BNY Securities Limited, a UK subsidiary of the Bank of New York, has signed an agreement with Wilco International, a subsidiary of Automatic Data Processing, Inc., to use Wilco’s Tarot securities processing system for its new UK retail clearing services operation.
BNY will offer this new service on an outsourcing basis to retail and private client stockbrokers and investment managers, building on its experience in the US where it serves 250 brokers and investment managers.
Tarot will be used at BNY for both Model A and B clearing for a broad range of financial instruments and products including international and domestic equities; fixed income; collective instruments including unit trusts; options; foreign exchange and tax efficient products such as ISAs and PEPs.
“We are committed to providing our clients with the highest standards of service in a cost-effective, low-risk environment,” said Charles van der Merwe, Managing Director, BNY Securities Ltd.
“Tarot delivers secure multi-entity processing, leading international functionality, high STP rates and low cost of ownership,” said Donal O’Brien, IT Director, Wilco International.
The Tarot system will support all sizes of BNY client operations from initial order capture through to settlement, accounting and custody. Tarot will capture orders for BNY via the Internet and other media, prior to routing to retail service providers, the London Stock Exchange or external brokers. Settlement functionality incorporates a CREST gateway and a range of features from the set-up of client and market instructions, capture of executed trades to matching and full market and client settlement. A full accounting service includes support for multiple legal entities and multiple branch operations.
The Bank of New York is also an established user of ADP’s BPS outsourcing system for its North American domestic processing.