The Profitability Engine Behind Capital Markets

Even as banks have largely recovered from the 2008 financial crisis, the business environment has been irrevocably changed. Squeezed by persistent and intensifying regulatory pressures, the significant investment necessary to navigate complex and shifting market structure, and the weight of inflexible legacy systems, trading desks are struggling to provide adequate profits. To improve return on equity, capital markets participants need to aggressively restructure their trading businesses, automate processes, and leverage technology to slash costs and empower their traders. Leading financial firms finally are investing to modernize legacy infrastructure and transform the enterprise into an agile business powered by data and technology. This TabbFORUM editorial Spotlight, sponsored by Broadridge, takes an in-depth look at current profitability challenges and how new solutions and business models, including mutualization, are helping the industry improve efficiencies, reduce risk and reinvigorate profitability in critical areas such as post-trade processing and trade expense management.