Viewpoint on clearing and settlement

August 2009
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Viewpoint on clearing and settlement

At a glance

Financial services companies should reevaluate their global clearing and settlement relationships, and determine whether a self-clearing, hybrid, outsourcing, or joint venture model is most appropriate.

The face of clearing and settlement has changed significantly over the past several years. In today's difficult and uncertain economic environment, many financial services companies are reviewing their existing operations and service-support infrastructures for cost savings and improved efficiencies. Companies are focusing their attention on controlling costs, acquiring new businesses, and leveraging their global presence. These factors have presented competing and conflicting influences on how banks, broker-dealers, asset managers, and hedge funds approach their businesses, execute plans, and allocate critical capital and resources.

Financial services companies should reevaluate their global clearing and settlement relationships, and determine whether a self-clearing, hybrid, outsourcing, or joint venture model is most appropriate. In implementing any of these options, companies should consider which option, or combination of options, maximizes process efficiency and cost effectiveness, and best aligns with their business objectives.