Viewpoint on clearing and settlement


Clearing and Settlement - to outsource or insource?; Taking a fresh look at available options in light of the financial crisis

September 2009

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.

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