ADP Clearing & Outsourcing Services (ADP), a division of Automatic Data Processing, (NYSE: ADP), today announced that WestLB Securities (WestLB) is outsourcing to ADP a range of operations functions relating to clearing and custody.
WestLB, the first institutional client on this service, will remain a separate self-clearing broker dealer.
This unique offering enables WestLB to remain a self-clearing entity on ADP's Brokerage Processing Services (BPS) back-office technology while using ADP's centralized operations staff to maximize economies of scale. This highly flexible solution allows WestLB the opportunity to outsource certain operations activities and back-office functions without impacting the customer experience.
Pino Vallejo, Executive Director, WestLB said, "After a thorough analysis, we determined that outsourcing some of the labor-intensive functions of our back-office operations was the most cost efficient way to grow our business. It allows our management team to focus their efforts on areas of our business which differentiate us from our competition. The conversion onto ADP Operations Outsourcing went very smoothly and we are enthusiastic about going forward with this service."
Operations Outsourcing, a unique offering in the marketplace, allows ADP service bureau clients to outsource a variety of the operational, labor-intensive functions relating to trade clearance, settlement and custody while continuing to remain a separate self-clearing broker. This customized solution affords any client the opportunity to continue to manage its core business with no impact to its front office and its customers while continuing to control its financing and related activities.
"We are delighted to expand our long-term partnership with WestLB. This solution will reduce costs while allowing WestLB to take advantage of ADP's economies of scale and dedication to World Class Service," said John Hogan, co-President, ADP Brokerage Services Group.
Operations Outsourcing is part of ADP's three-tier strategy to offer any brokerage firm, regardless of size, the appropriate range of outsourcing services to best meet its individual needs on a single technology platform, including service bureau, operations outsourcing, or correspondent clearing services.
In addition, WestLB uses ADP's Gloss for international trade processing, impact and Brokerage Processing Services (BPS) for its North American fixed income and equities processing respectively. In addition, ADP distributes WestLB's confirmations, statements, and prospectuses. WestLB currently outsources its reorg and proxy business to ADP.