Capco Aids European Exchange Group in ‘Project HERA’

Capco helps leading European provider of securities and systems to maintain its leadership position.

The European Commission’s Code of Conduct for the financial services industry aims to provide a first step in improving the overall efficiency of European capital markets. The Code gives signatories the freedom to choose preferred service providers at each level of the transaction chain (trading, clearing and settlement), and to reduce the clearing and settlement costs of cash equity trades.

Capco assisted the Exchange in its search for the optimum strategic direction in light of the Code of Conduct. ‘Project HERA’ consisted of a number of work-streams to provide a complete understanding of the post-trade European cash equity market and the different functional processes at work between the major clearing houses and Central Securities Depositories.

Benefits

  • A better than 50% reduction of opportunity costs caused by inefficient use of liquidity
  • Introduction of rebilling mechanism for liquidity cost caused by units/products within the bank