While many back office processes such as confirmations, settlements, asset servicing, and collateral management span across large sets of products, such functions are nuanced in that each sub-product often follows its own process flow encompassing different process steps, systems, industry utilities, and criteria for success. Furthermore, such functions are subject to a high degree of change and compliance due to regulations and internal strategic change initiatives.
We have been performing a large portfolio of back office services for nearly 10 years and in addition to cost savings, are able to provide a utility benefit to our customers, decreasing error rates and increasing efficiency, due to similar services delivered to multiple customers. Given our breadth of experience, we are able to understand the nuances for each sub-product and maintain close dialogue with our customers and industry groups to ensure the support we provide is ahead of the curve.
For example, in the OTC derivative space, we have outsourced a significant percentage of many of the top banks day to day operations and have been able to decrease fail rates and confirmation times through a combination of matching and workflow tools, business focused metrics packs, and disciplined execution. We have also played a role in setting up OTC clearing functions and are now performing tasks applicable to this new operating environment such as exchange reconciliations and exchange driven margin processing.