Background
After the acquisition of a Prime Brokerage business, a global bank enlisted Wavestone to define a Target Operating Model with the objective of streamlining and increasing the efficiency of its North American platform. Wavestone helped define and execute initiatives that would:
- Generate operational efficiencies through the sharing of platforms and resources across business lines
- Reduce funding requirements and costs by optimizing margining and financing mechanisms
- Better support business development activities
Challenges
Wavestone helped the client address the following challenges:
- Defining the US Target Operating Model and governance structure – Wavestone designed the program governance and roadmap and drafted scenarios for the future operating model covering all business lines’ execution, clearing, and custody capabilities
- Designing the system integration – Wavestone designed a new IT architecture that enabled trade flow across the Front Office, from execution to accounting and booking
- Implementation and testing – Wavestone managed the migration protocol and coordinated the UAT and go-live phases to ensure successful implementation of the new system
Answers and Key Success Factors
- Achieved annualized benefits totaling $55 million upon successful implementation of the operating model, including a cash transfer of $10.4B and reallocation of over 55,000 equity and option positions
- Eliminated over 40 IT systems and their associated costs as a result of the new IT architecture and enhanced operating model
