Streamlining Trade Settlements: Our Control Solution | Gresham
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.
Discover how Gresham's Control solutions are revolutionising financial institutions across the globe. Contact us today to explore how these solutions can drive efficiency and accuracy in your operations.
