Agency broker Bloomberg Tradebook is now able to offer self-clearing of US equities to its clients through adopting technology provider Broadridge's business process outsourcing solution.
Adopting Broadridge's solution will help Bloomberg Tradebook maintain a greater focus on its clients and services for both the buy- and sell-side, according to its president and CEO, Ray Tierney.
"One of our main goals in teaming up with Broadridge to offer self-clearing was to lessen our exposure to a third-party clearer," he said.
"If you partner with a clearer, you relinquish some control of the client relationship. I want to respond to their needs and resolve to their pain points, instead of leaving them to have products they don't need forced on them by a third party."
The deal means Bloomberg Tradebook's clients will benefit from a more streamline service, but will also help to reduce the cost of clearing.
"Clearing costs are extremely highly relative to the revenues and commissions that [equities brokers] are bringing in. Lower rates clearly benefit Tradebook because we can lower our costs, however, as importantly; it allows us to pass those cost savings onto our clients. Our clients also benefit by dealing directly with Tradebook, which we think enhances the client experience.
Using Broadridge will help to reduce the agency broker's technology and overhead costs and provide a more efficient service to clients.
Tim Gokey, COO of Broadridge, adds: "[Our] business process outsourcing model supports all aspects of the firm's back-office operations, enabling Bloomberg Tradebook to focus on client service and operational efficiency."
Currently, self-clearing is only available for US equities, and Tierney says the firm currently has no plans to expand this in the short-term but could explore broadening its offering in the future.