Technology Solutions Improve Compliance, Enhance Business Results for Capital Markets and Brokerage Clients, Survey Finds
CHICAGO — May 11, 2011 — In a post-financial crisis environment where the new normal includes heightened competition, closer regulatory scrutiny, and greater demands for transparency from customers, capital markets and brokerage clients of Firm58, Inc. (https://www.firm58.com), a leading financial management software company, report that technology solutions are helping them meet the new challenges and reduce costs, according to a new survey.
Approximately three-quarters of those surveyed, 74%, said using the company’s technology solutions helped them be better prepared than the systems previously used for audits by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), as well as internal compliance reviews. More than three-quarters (76% of firms that replaced spreadsheet-driven processes) said Firm58 has improved their ability to process trade-related operations. The survey also found that 61% of respondents cited a reduction in time costs after switching to Firm58’s trade operations solutions, and 35% mentioned benefitting from lower technology costs.
Firm58’s capital markets and brokerage firms surveyed said the financial crisis has sharpened their focus on evaluating the profitability of their trading business (83% of those surveyed), partly in response to their own clients seeking more detail on costs. More than 90% of survey respondents said their clients demand more transparency into post-trade operations than they did three years ago. Additionally, 78% of clients surveyed said using Firm58 has given them easier access to post-trade data they were previously unable to collect.
“We’re gratified our technology solutions are enhancing our clients’ business results,” said Nick Fera, Firm58’s chief executive officer. “Firm58 continues to gain traction as capital markets firms and brokerages adopt our platform, which helps protect revenue, reduce costs and adds greater transparency to critical post-trade data. The payback of time and technology expense reduction gives these firms a competitive advantage to focus on new business and customer acquisition efforts.”
Firm58 offers web-based financial management software that manages the processes associated with fees, commissions and payouts to help increase revenue and operational efficiency, and reduce costs. For many, Firm58 becomes the trusted source of critical post-trade data, merging together disparate pieces of the trade process to create a consolidated view of their trading business and profitability.
Firm58′s solutions have been adopted by large financial institutions to manage fees, commissions and payouts, including billing, daily profitability reporting, and soft dollar program management. The company manages the billing function for many of the top bulge bracket firms as well as global exchanges, including the CBOE Stock Exchange (CBSX), the Boston Options Exchange, and ELX Futures. Prominent institutional brokerages, broker-dealers, and proprietary trading firms including Cheevers & Company, and Hamilton Executions also employ Firm58′s solutions. Founded in 2005, Firm58 has offices in Chicago and New York, and is backed by New World Ventures and North Bridge Venture Partners.
Firm58’s client survey was conducted in April 2011 and is based on responses from 68% of the company’s client base.