For an openly acknowledged problem, the true cost of post-trade processing for brokerage fees and billing has resisted measurement and quantification. Until now. Based on extensive research among leading banks and inter-dealer brokers across Europe and North America, this report shows the eye-watering damage that inefficient legacy systems, lack of automation, and the inability to persist data through the workflow has on profitability at these firms.

Focusing specifically on brokerage, clearing, custody and exchange costs (BCE), our research shows that these trade expenses can reach up to $750 million for the majority of banks surveyed. It shows that trade expenses have reduced profits by up to 20 percent. And it shows that brokerage-related fees are a top-three business expense for almost every participating organisation.

As for the effect on the front office, the inability to negotiate rates effectively, allocate capital with confidence, or provide seamless customer service around billings and payments have all had a detrimental effect. The limitations of back office solutions obscure the most essential of insights: the cost of carrying out current business and the true price of business growth.