Firm58 Provides Billing/Expense Management Solution for a Large, Multi-National Broker

A large, multi-national broker dealer with a significant electronic execution business for equities and options approached Firm58 for assistance in managing its billing and expense management requirements.

The client needed a robust broker dealer solution capable of:

  • Producing timely and accurate invoices at month end
  • Introducing a “cost plus” model for billing to charge a fee above the actual execution costs of each transaction
  • Offering its clients portal-based visibility to invoices and monthly trade progress
  • Calculating SEC and other regulatory fees on each trade to avoid losses associated with not charging these fees back
  • Resolving the problem of delayed payments because invoices were late and frequently wrong
  • Delivering visibility into its actual trading costs per client or account and to determine whether a client was profitable or not
  • Testing new fee structures to attract new clients or draw more business from existing clients

Firm58 addressed the client’s concerns by equipping the business with a broker dealer solution that:

  • Features a robust model that calculates all the costs and fees on a trade by trade basis
  • Manages the changes in US Equity and Option public exchange fees
  • Provides visibility into client by client costs and profitability
  • Enables the client to generate and distribute invoices within a few days of the month end
  • Allows the client to model various price structures to generate new/more business
  • Offers a professional portal front end for its clients, allowing them to view and download invoices and trades

As a result of implementing the Firm58 broker dealer solution, the client achieved several important business advantages, including:

  • Happier clients
  • A professional interface rather than a spreadsheet managed by the finance department
  • Greater visibility for clients and traders
  • Ability to meet the demands of clients for cost plus billing
  • Shorter collections cycles (resulting in working capital improvement)
  • The reallocation of internal resources to other, more value-creating activities by outsourcing the billing solution to Firm58