E*Trade Financial outsources back office to ADP
11 October 2004 | 3136 views | 0
E*Trade Financial has gone live with a 10 year outsourcing agreement with ADP for the management of brokerage transaction processing and regulatory document delivery services at its broker dealer subsidiaries.
As part of this long-term agreement, brokerage back office books and records systems have been converted to ADP Brokerage Processing Services (BPS).
ADP's Tarot system is already in use at the E*Trade UK office for international transaction processing. In addition, the vendor will provide regulatory document delivery services as well as new account processing of paper applications.
ADP says its BPS system is streamlined - once a brokerage account is opened, client information is fed directly into the BPS name and address system. E*Trade will also have real-time access to BPS' relational database for account information and the creation of customised reports on behalf of its broker/dealer subsidiaries.
In addition, ADP is distributing broker/dealer confirmations and statements through its PostEdge platform.
The system replaced existing proprietary and vendor applications.
Joshua Levine, chief technology officer, E*Trade Financial, says: "ADP's platform should yield cost savings while allowing for the centralization of our securities processing and regulatory document delivery with a single vendor."
E*Trade Securities currently outsources its proxy business to ADP.
Separately, ADP Wilco has signed WM Datenservices, a provider of German securities data, to its Swift Service Bureau.
Under the agreement, WM Datenservice will be able to use the service to receive and distribute securities reference data messages with other information providers and custodians. The firm is expected to go live with the service in December 2004.
WM Datenservice also plans to offer corporate actions notification over SwiftNet by using ADP Wilco as its service provider.
Georg Eisel, MD, WM Datenservice, says: "This enhancement will support customers' efforts in achieving STP and process optimisation across our full range of German domestic and international corporate actions."