ADP Brokerage Services Group has inked a 10-year outsourcing contract agreement with E*TRADE Group Inc to provide the firm with back-office systems processing and other related services for all of the E*TRADE
Securities brokerage business.
As part of the deal, E*TRADE Securities is converting its brokerage back office books and records system to ADP’s Brokerage Processing Services (BPS). ADP will also provide regulatory document delivery services through its Investor Communication Services unit, as well as new brokerage account processing of paper applications. The implementation will take a phased approach and ADP’s system will replace existing proprietary and vendor systems.
“We are delighted to partner with E*TRADE Financial and are proud to be able to offer them the global capabilities for converting their brokerage back office books and records systems,” says John Hogan, co-President, ADP Brokerage Services Group. “ADP’s solution will enable E*TRADE Securities to save money and use a single platform for all of their global transaction processing.”
ADP will distribute E*TRADE Securities confirmations and statements through its PostEdge platform. PostEdge enables the delivery of these investor documents either electronically or by traditional mail, depending on the preference of the investor. E*TRADE Securities currently outsources its proxy business to ADP.
“This change comes as part of our overall review of every aspect of our business,” adds Jarrett Lilien, President and Chief Operating Officer, E*TRADE Group, Inc. “After a thorough review of our back office alternatives, we chose to go with ADP. This move, first and foremost, will save us money. Strategically, we will also see benefit, as ADP will allow us greater opportunity to centralize our global securities operations, as well as allowing us to achieve operational synergies between bank and broker.”