Streamlining Trade Settlements: How London & Capital Achieved Efficiency with Gresham’s Control Solution
Introduction
In the fast-paced world of wealth management, the demand for precision and efficiency in trade settlements is paramount. This case study delves into how London & Capital, a boutique wealth manager managing over $5.2 billion in discretionary assets, optimised its trade settlement and notification processes using Gresham’s Control Solution. By automating operations and reducing risks, London & Capital embraced a new era of scalability and accuracy.
The Challenge: Overcoming Manual Trade Notifications
- Manual Trade Notification Overload: As London & Capital's trade volumes surged to over 18,000 trades per month, the manual process of filing SIs (Settlement Instructions) and trade/client notifications became cumbersome and time-consuming.
- Complicated Trade Confirmation Across Multiple Entities: With trade confirmations across 20 custodian banks, each with multiple branches spanning seven countries, and 35 brokers, London & Capital faced complexities arising from varied file formats and connections.
- Risk and Inefficiency: Coordinating communication among diverse entities, managing trade executions, and complying with distinct cash management regulations increased the risk of errors and inefficiencies.
The Solution: Gresham’s Control for Buy-Side Settlements
Recognising the need for a more efficient custodian communication process, London & Capital turned to Gresham’s Control for buy-side settlements. This system revolutionised trade settlement and notification processes, addressing the firm's challenges:
- Reduced Risk and Complexity: Control's solution offered transparency and accuracy in settlement instructions. With accurate instructions delivered in a timely manner, risks were minimised, and the entire process became more efficient.
- Streamlined Operations: The system reduced errors, effort, and risk associated with trade notifications and SIs. This resulted in a clearer overview for higher-level management, enhancing transparency in real time.
- Cost-Effectiveness and Efficiency: Control's cost was less than hiring an additional staff member. The solution’s efficiencies allowed London & Capital to eliminate three full-time positions, reducing operational costs.
Results and Benefits
- Reduced Risk and Costs: Control’s transparency led to fewer errors and delays, significantly reducing settlement risks. Moreover, the solution's cost was lower than hiring an additional staff member, contributing to overall cost savings.
- Efficiency and Enhanced Management: Operations improved, with the operations manager focusing on higher-value tasks. London & Capital could manage trade notifications and SIs with fewer individuals, freeing resources for other essential tasks.
- Scalability and Flexibility: With Control, scalability was no longer a concern. Trade allocations increased, and the firm is confidently expanding, adding custodian and broker relationships without worrying about operational complexities.
- Efficient Cloud Deployment: London & Capital adopted Control through a flexible, scalable cloud deployment. The firm chose the software-as-a-service (SaaS) version for its efficiency and cloud-based infrastructure. The availability of an on-premise version further adds to its flexibility.
Conclusion
By implementing Gresham's Control Solution for buy-side settlements, London & Capital transformed its trade settlement and notification processes. The transition from manual notifications to an automated, transparent system resulted in reduced risk, enhanced efficiency, and lower costs. With Control, London & Capital streamlined its operations, embraced scalability, and set the stage for a strategic partnership with Gresham, confident in its ability to handle complex trade scenarios and future growth.
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