In a move aimed at winning back business from the big bank-owned stockbrokers - Davy and Goodbody - BCP Stockbrokers is outsourcing its back office and clearing systems to the US giant Wexford Clearing Services. The move is a prelude to BCP introducing online dealing within the next few weeks.
BCP director Mr Eamon Leonard said: "There is no doubt that over the past few years BCP has been losing business to the larger bank-owned stockbroking firms, as investors perceived that they would enjoy a higher level of personal financial security when trading through such firms."
BCP was ordered by the Central Bank early last year to stop taking on new clients, largely because of concerns that its back office operations could not handle the level of business. But that restriction was lifted last August.
Under the outsourcing arrangement with Wexford - an arm of US financial services group Prudential - BCP clients will have their accounts settled through one of the most advanced clearing systems in the world. "Wexford clears 180,000 tickets a day," said Mr Leonard, who added that BCP currently cleared 100 to 200 tickets a day.
Client accounts will be updated in real time while securities will be held by Prudential and reflected in their BCP account in their own name in electronic format. Clients will also be able to review their accounts with BCP on the company's website using a PIN.
Mr Leonard said BCP planned to begin its online dealing service in a few weeks' time, although initially online trading would be confined to US stocks. "A few weeks after that we will be able to offer online dealing in Irish and British stocks," he said.
Mr Leonard added that the outsourcing arrangement with Wexford would not result in any job losses. "No job losses are planned, we'll reassign people to areas like sales and a helpline for online dealing."
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