Capital Markets

Financial services companies are experiencing a higher level of oversight and greater scrutiny of practices as the industry moves past the global financial crisis. The proliferation of new, sweeping regulations is reshaping internal practices and forcing organizations to reassess their business models. Revenues are down as product offerings are curtailed or are simply eliminated. Costs are up as companies invest capital to meet regulatory demands. As a result, financial services firms are facing severe profitability and margin pressures, with less money for reinvestment in their business even as the industry returns to growth mode. Doing more with less has never been more applicable.

Understanding market issues
Capco’s Capital Markets practice offers solutions that can help investment banks, brokerage firms and trading exchanges meet regulatory requirements and exploit the considerable opportunities that change brings. Because we work exclusively in financial services, we understand the pressures, demands and business issues that our capital markets clients face. These include continued focus on risk management, including credit, counterparty, market and operational, as well as data management to better understand exposure and make more informed decisions.

Capco’s capital markets experts work side-by-side with our clients to develop innovative solutions and delivery models to meet their specific needs. Our professionals have deep industry experience in all aspects of capital markets’ products, including fixed income, currencies, commodities, equities, derivatives, futures and options.

Focused offerings
Our solutions focus on the specific needs of leading financial institutions and trading venues. With significant resources in the United States, Europe and Asia, our Capital Markets projects span the life cycle from strategy to implementation. Specific offerings include:

• Collateral management trading – using Capco’s proprietary collateral management maturity model to help firms achieve visibility into, and active management of, the collateral inventory pool across businesses and products and turn their collateral management back-office operation into a trading cost-reduction or revenue-producing unit
• Integrated safety and soundness – providing a compliance framework that offers an enterprisewide view of regulatory and oversight processes
• Cost takeout and technology rationalization – dealing with complex cost issues while building on internal standards to help organizations streamline and automate processes and promote data integrity
• Over-the-counter derivatives clearing process design – improving volume, reliability and transparency of firms’ derivatives trading platforms
• Inter-company trade settlement – securing greater processing volume of trades in less time at lower cost
• Post-merger integration – helping clients realize the full potential and value of their newly merged entity

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