Capital Markets Advisors

Turning Change Into Opportunity


Transformation from a Front to Back In-House Equity Brokerage Processing Platform to an Integrated Solution with Market Standard and Vendor Components for a Top Tier Global Brokerage Services Firm

Client Profile:

  • Global Brokerage Service Firm
    • Global multi-asset brokerage services firm.
    • Approximate daily trading volume of 300k to 400k trades.

Situation and Objectives:

  • Newly merged entity wanted to achieve a significant growth in their equity and prime brokerage businesses, add new equity capabilities, develop and launch a robust prime brokerage business and to aggressively pursue new types of equity-based clients such as start up trading entities and other high volume, high frequency trading firms.
  • Post-merger entities were running disparate brokerage processing platforms.
  • For one entity, the existing front to back technology platform was a proprietary application system, which was virtually undocumented, inflexible, not scalable, and only supported by a single in-house technology resource.
  • For the other entity, the legacy brokerage platform was the Broadridge BPS vendor package.
  • Front office support was primarily based in NYC while operational and technology support was based in San Francisco.
  • Client recognized that they needed to upgrade their core operational capabilities to gain efficiencies and save costs, migrate away from their legacy platform to gain flexibility and reduce risk, and organize their technology and operational support to concentrate all resources in NYC to enhance overall customer service quality.
  • Client selected SunGard Phase 3 as their target equity broker-dealer processing system for the merged entity to replace the legacy front to back proprietary system and Broadridge BPS, and to fully support all of the new business requirements.
  • After this client selection decision, CMA resources were initially engaged to design the accounting for the target environment (using SunGard Phase 3) and to develop the detailed implementation plan for realizing the target environment where SunGard Phase 3 replaces the legacy platforms. As it turned out, the target solution required a number of additional components and presented a series of integration challenges.

Core Need:

  • A strategic partner that could provide leadership, industry expertise, and resources to enable the successful planning and execution of the transformation from a front to back in-house equity brokerage processing platform to an integrated solution with market standard vendor components that enabled the enhancements in client service levels, operational efficiency and additional functional capabilities to drive the level of business growth sought and to launch the new prime brokerage business.


  • Designed an integrated equity brokerage processing solution that met client’s functional & technical requirements to support the business objectives.
  • Collaborated with vendor and client business, operational and technical teams to install, configure, customize, test, train, convert and implement integrated solution.
  • Supported the operational activities and system customization requirements following cutover.Design
    • Setup PMO to govern the entire conversion program with processes, tools, templates, monitoring & reporting on status, issues, and risks.
    • Developed requirements for target equity brokerage processing environment to use for gap analysis vs. Sungard Phase 3 so that any required customization can be properly incorporated into the implementation plan.
    • Identified & categorized gaps as either minor or major enhancement or requiring a separate solution.
    • Identified & evaluated vendor package solution alternatives for filling all gaps requiring a separate solution and selected components for margin processing, securities lending rebates, client confirms, statements, reporting, performance measurement, risk management and reconciliation.
    • Identified & evaluated data feed vendor alternatives for security master, corporate actions & market data and selected optimal solution.
    • Developed high level solution design & detailed implementation plan, incorporating all components and data feeds.Build
    • Built customization plans for all components based on requirements.
    • Installed all components, configured and customized as required.
    • Developed test strategy, test plan, test cases and conducted unit, integration, performance, UAT and defect tracking.
    • Developed and executed data conversion including detailed mapping for all mock conversions and final cutover.
    • Updated operational & technical procedures and developed training manuals to conduct training to promote operational readiness.Operate
    • Implemented organizational changes/reengineered processes to support relocation of technology and operations teams to common site with front office team.
    • Provided ongoing customization and maintenance to support continuous improvement for client requirements.
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