Market Share Analysis
Challenge
A large U.S. bank was interested in potentially expanding its brokerage business abroad. Already with a mature presence in the U.S. market, the bank was looking to substantially grow its European equity trade volume.
In addition to gaining market share, the bank wanted to ensure it was implementing as efficient a process model as possible.
Solution
To assist the client bank, Z/Yen undertook a survey of major broker/dealers with a presence in both the US and European markets. The survey focused on two major issues:
- Process versus market/product alignment for European Equities operations
- Extent of outsourcing /off-shoring of operational activities
Results
Based on the findings of the survey, the client bank was able to take real action to better position itself for growth in this new market.
The bank decided to:
- Move processing and client support to a near-shore environment,
- Set up self-clearing facilities in two major European markets, and
- Fundamentally change from a vertical market-aligned structure to a utility model.
