The new clearing utility operated by Sungard is aiming to deliver 20% savings on back and middle office functions
Tech firm Sungard
signed this month Barclays as the first customer of a new
clearing utility which seeks to bring various banks together to
share the back office service, signalling a possible new model
for the embattled clearing industry.
Sungard said the new futures and swaps clearing
service will help derivatives brokers cut costs and achieve
greater efficiency, as well as reducing operational risk and
total cost of ownership by leveraging economies of scale in the
middle and back office.
tech vendor said the deal with Barclays had been driven by
increased regulation, which has created an operating
environment that "continues to erode profit margins" and
positioned its utility as the only model open to a
clearing industry under intense pressure.
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