BBY Limited, an independent financial services group, has gone live with GBSTs equities clearing and settlement platform Shares.
This follows BBYs successful application to the ASX to become a self-clearing broker. BBY has been executing, clearing and settling trades for its Australian private clients from December 5.
We believe BBYs move to self-clearing will deliver quicker and more accurate trade processing, streamlined compliance and will leverage leading-edge technology as well as some of the most experienced people in the domestic clearing industry, says Arun Maharaj, BBY CFO.
The GBST Shares platform settles close to 50% of all trades executed on the ASX on any given day, GBST says. GBST Shares has been benchmarked to process more than one million trades per day pre single instance.
BBY operates in Australia, the UK and the US. The company has now moved to the fully integrated version of GBST Shares, which includes derivatives, shares, risk, front office and infrastructure hosting, and is expected to provide greater scale for the BBY business.
We chose Shares after a competitive vendor selection process, and we believe this new platform will facilitate the higher trading volumes we are expecting to experience in the near to medium term, particularly given our recent acceptance as a Chi-X market participant, Maharaj says.
BBYs move to self-clear comes as ASX has raised capital liquidity requirements for self-clearing brokers from AU$100,000 to AU$5 million and eventually AU$10 million, notes Denis Orrock, CEO of GBST Broker and Financial Services.
While we will continue to see consolidation amongst the broking industry, it is encouraging an independent Australian broking house is making a long term commitment to its position in the market, Orrock says.
Meanwhile, GBST reports that it would continue to roll out its Syn~ [sic] platform in 2012, and plans to go live in mid-2012 with the first implementation of the Syn~ technology in Australia.