Client Profile
Full-service Broker Dealer focused on retail clients. This dually registered Broker Dealer provides services including retailing equities, corporate debt, mutual funds, insurance, Municipal securities and US Government Securities. Additionally, through its RIA, the firm also provides advisory services. The firm is a fully disclosed correspondent firm clearing through a top 5 Clearing Services firm.
The Situation
The client firm's clearing contract was up for renewal. The firm was ready to renew their clearing contract for 5 years with minor improvements from their current provider. They were unaware of the alternatives or how changing providers would impact their business.
Oyster's experts understand how a clearing services provider may be a better fit for one organization over another. Due to specifications such as market conditions and current business areas of focus, the best clearing partner for your firm may be different today than in years past.
Before renewing, the firm engaged Oyster Consulting to help. Oyster provided a Current State Assessment and Gap Analysis of their clearing platform and viable alternatives.
A current state assessment is a comprehensive tool to gather and confirm the client’s operating metrics, data and business focus. This tool will encompass both your firm's current operating metrics as well as your goal metrics to ensure future relativity.
The Questions
Aren't All Clearing Services basically the same?
Will it be worth my time to look at other options?
Can I really improve my service level, even if I stay with the current vendor?
Whether the analysis shows the current provider is the right choice or a change is a better fit, Oyster Consulting also will help with the pricing discussion from the beginning of the negotiation to the signing of the contract.
Actions Taken By Oyster Consulting
Oyster Consulting approached the engagement with a structured and hands-on methodology to ensure analysis and appropriate recommendations. Using the information from the Current state assessment and gap analysis, Oyster was able to make informed recommendations as to the best clearing partner for this firm. An in depth review of clearing platform alternatives was performed.
Oyster Consulting’s Clearing Platform Analysis helps firms by:
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- Analyzing key firm business metrics, transaction volumes & service model
- Coordinate vendor presentations and interactions
- Obtain Pricing proposals from each alternative
- Identify gaps with current provider and alternatives
- Advise on financial modeling of pricing/fee proposals with Firm Finance team
- Define & assess potential clearing firm platform and alternatives
- Optimize efficiencies & support the firm’s objectives
- Facilitate & advise toward optimal strategic decision during negotiations
The Outcome
By the end of the engagement, the firm successfully found the best clearing partner for them. With Oyster Consulting’s analysis and guidance, this firm was able to recognize millions of dollars in savings on their Clearing Contract.
Key Outcomes included:
- Chose The Right Clearing Partner aligned with firm's direction
- Achieved Significant Savings: The firm saw multi million dollar savings on their Clearing Contract
The Road Map
Information is not knowledge. The only source of knowledge is experience. You need experience to gain wisdom.
-Albert Einstein
What Our Clients Have to Say
"The Oyster team has always shown they have in-depth industry knowledge that has proven to be invaluable to us as a firm, from looking at issues strategically to helping implement efficiencies. We have never been disappointed with their engagements."
- President, National Broker Dealer
“Oyster took away the guess work, providing us with a strategy that led to value.”
- President, National Broker Dealer
"Oyster's expertise helped us streamline our business model to ensure we are focused on driving revenue and becoming less burdened by outdated policies and procedures."
- Founder, Broker Dealer