A New Era for Trade Expense Management

Achieving cost optimisation and transparency in brokerage fees and billing

Global investment banks are spending vast sums each year on their brokerage fees and billing operations but data challenges, lack of automation and legacy technology make it difficult to fully understand and therefore optimise their spend across the organisation.

According to an independent survey we commissioned earlier this year, these issues are impacting capital allocation, profitability and client relationships.

Key research findings include:

  • 88% say trade expense is a top three annual cost, with 80% of respondents paying between $250m and $1bn in 2020
  • 78% cite a lack of a central data repository & 77% cite outdated rate agreements and counterparty referential data as key issues impacting operational processes
  • 54% say trade expense costs and challenges have affected decisions on capital allocation, and for 45% trading profits have been reduced
  • While 65% state that investment to improve their trade expense management operations is one of the firm’s top priorities, only 24% have budgets in place

Significantly, with the survey revealing the impact from back office to front office, this is a key issue for senior decision makers across the markets.

Click here to download the full report.