MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Tuesday, May 6, 2003 E*TRADE Signs Outsourcing Pact ADP Brokerage Services Group, a division of the payroll giant, has inked a 10-year outsourcing contract with the E*TRADE Group to provide back-office systems processing and other related services. The agreement, which is expected to help E*TRADE keep the lid on clearing and execution costs, affects all of its securities brokerage business. "After a thorough review of our back office alternatives, we chose to go with ADP," said Jarrett Lilien, president and COO, E*TRADE Group. "This move, first and foremost, will save us money. Strategically, we will also see benefit, as ADP will allow us greater opportunity to centralize our global securities operations, as well as allowing us to achieve operational synergies between bank and broker." The two firms have not disclosed financial terms of the new outsourcing deal. Still, the agreement must be especially welcome news for ADP, as a recent Reuters report notes that its brokerage services unit has hampered its earnings for several quarters amid financial markets woes. E*TRADE Securities is converting its brokerage back office books and records system to ADP's Brokerage Processing Services (BPS). ADP will also provide regulatory document delivery services through its Investor Communication Services unit, and new brokerage account processing of paper applications. The conversions are to be phased in, and ADP's system will replace existing proprietary and vendor systems. Also, ADP will distribute E*TRADE Securities confirmations and statements through its PostEdge platform. PostEdge enables the delivery of such documents either electronically or by mail, depending on investor preference. E*TRADE Securities currently outsources its proxy business to ADP. Printed from: MFWire.com/story.asp?s=5099 Copyright 2003, InvestmentWires, Inc. All Rights Reserved |