Overview

In a sector where speed, reliability, and scalability are crucial, a leading European bank sought to upgrade its structured product market making capabilities. By adopting Broadridge's Tbricks platform, the bank aimed to tackle the complexities of managing market quotations for numerous custom financial instruments, enhance competitiveness, and ensure compliance with evolving regulations.

Challenges

Operating globally, the bank faced key challenges:

1. Scalability Limits: Their legacy system reached architectural limitations and couldn't handle the increasing number of issued financial instruments, hindering business growth and client demand fulfilment.
2. Regulatory Compliance: Adhering to standards like MiFID was crucial to avoid market exclusion.
3. Latency Issues: Low latency was essential for maintaining competitiveness, but their existing system struggled with rapid pricing and quoting.
4. Complex Market and Instrument Diversity: Managing a vast portfolio across markets presented significant operational challenges. Competition requires efficient creation, pricing, and market making based on demand. The diverse asset and geographic exposure of these products increases pressure on automation and monitoring.
5. Market presence: Added pressure on quote availability across all distribution channels.

Solution

Tbricks emerged as the ideal solution, offering:

• Scalability and Performance: It supports high throughput and low latency, allowing seamless management of unlimited instruments, thus enabling business expansion.
• Customizability: The platform allows for customizable quoting logic, offering a competitive edge through rapid adjustment to market events and complex configurations.
• Regulatory Compliance: Tbricks aligns with industry standards, ensuring compliance and market continuity.
• Enhanced Interface: A consolidated user interface streamlines operations and optimizes trading.

Outcomes

The bank experienced transformative results:

• Increased Market Share: Accurate quoting across markets improved the bank’s market share and trading volumes.
• Operational Efficiency: Significant operational efficiencies reduced latency and improved management of extensive product ranges.
• Reliability and Trust: Near-uninterrupted uptime strengthened the bank’s reputation and customer loyalty.
• Scalability: The bank overcame growth barriers, positioning itself for sustained development and adaptability.

Looking Forward

The European bank, leveraging Broadridge’s Tbricks, has not only addressed immediate challenges but is primed to capitalize on future technological opportunities such as AI integration and automatization. By optimizing their structured product capabilities, the bank fortified its market position, guaranteeing robust performance and growth in a rapidly evolving financial landscape.