LBBW Securities, LLC, a wholly owned subsidiary of Landesbank Baden-Wrttemberg, is outsourcing a range of its operations functions to Broadridge Financial Solutions’ subsidiary, Ridge Clearing and Outsourcing Solutions, Inc.
LBBW has also decided to use impact, Broadridge’s application for fixed-income trade processing on an outsourced basis.
Broadridge’s Operations Outsourcing application enables LBBW to outsource the labour-intensive functions relating to trade clearance, settlement, and custody while leveraging Ridge Clearing’s centralized operations staff to increase economies of scale and remain an independent, self-clearing broker-dealer.
This allows LBBW the flexibility to outsource certain operations and back-office functions without altering its front office operations or impacting the customer experience.
With the majority of its business in the fixed-income sector, LBBW will also take advantage of Broadridge’s fixed-income processing engine, impact, to support its processing needs. Broadridge’s impact provides regional and global financial institutions with real-time position and balance information, as well as trade execution, real-time settlement and clearing interfaces for domestic and foreign fixed-income securities.
“As a new broker-dealer we are acutely aware of the need to minimize our operating and staffing costs, but it was important for us to remain independent and self-clearing. Broadridge’s Operations Outsourcing is exactly the offering we needed due to their suite of services allowing us to maintain processing control and the efficiencies of being self-clearing,” says Andreas Oberem, chairman, LBBW Securities, LLC.
“LBBW represents the kind of firm that Broadridge is eager to provide our Operations Outsourcing services to because this solution offers LBBW and any broker-dealer the freedom to remain self-clearing and gain the considerable cost savings associated with outsourcing the labour-intensive back-office functions associated with trade clearance, settlement, and custody in a way that is seamless to its customers,” adds John Hogan, president and chief operating officer, Broadridge.