Billing, Commissions and Exchange Services

Billing and Brokerage

Give-Ups have become a common practice in the futures industry. Managing the process in getting three parties to sign a give-up agreement, handling rate changes, and determining who gets paid what, has become an operational nightmare.

eClerx helps our clients across Billing, Commissions and Exchange functions. Our efforts have helped our clients to see significant improvements in their reputation across the industry with a much happier client base, predictable functions and a cleaner balance sheet within the first year of deployment.

Challenges

  • Manually intensive process of invoice validation and payment
    • Non-standard invoices and broker billing cycles across multiple brokers
    • Lack of data integrity and mappings – no visibility into broker outstandings and  true liabilities
  • Burden of backlogs and severe escalations from clients
  • Significant effort in generation of invoices delaying monthly collections
  • Lack of infrastructure to perform invoice generation, discrepancy resolution and fund application

Solutions

Brokerage Payables

  • Remediation of Aged payables through
    • Accrual aggregation at broker and period level and Consolidation of broker outstandings
    • Analysis on substantiated and unsubstantiated balances, and closing periods through payment swaps
  • eClerx auto reconciliation tool to automate invoice reconciliation
  • Tool kit in place to manage invoice inventory and life cycle
  • eClerx Invoice tracker provides real time end to end visibility of invoice life cycle
    • Maintain records of trade level discrepancies, issue owner, ageing and last action
  • eClerx Invoice Receipt Matrix Dashboard shows pending invoices and the number of broker entries created
  • Create broker profiles to record broker characteristics of billing format, billing period and cycle, common discrepancies, etc.
  • Set up alerts on payments crossing the payment range at broker level

Brokerage Receivables

  • eClerx Receivables enables workflow and database management:
    • Exception resolution module: Collate daily auto data feed of static data and billing information
    • Invoice generation module: Auto segregation of trades settled electronically, creation and dispatch of manual invoices
    • Fund application module: Trade level reconciliation, application of funds and generation of outstanding summaries
  • Daily reconciliation of executing business rates and lots with futures trade processing system and amendment of rates before pricing window closes

Benefits

Brokerage Payables

  • Assisted clients in clearing backlogs dating back to 18+ months, and  worth $80MM, within aggressive timelines
    • Closed books with brokers for the said period and reclassify incorrect expense allocations
  • Automated reconciliation results in reduced manual effort by nearly 30% and enhanced accuracy of 99.8%+
  • Helped clients significantly decrease payables balances: 45% decrease in payables balance to $50MM for an EU bank

Brokerage Receivables

  • Reduced invoice logging time from average of 30 days of receipt to 5 days
  • Reduced billing cycle time by 44% from average of BD14 to BD8
  • Helped clients significantly decrease receivables balances: 54% decrease in receivables balance to $30MM for an EU bank

Other Benefits

  • Helped clients significantly increase the amount of accruals population being settled electronically
  • Enable banks to improve their matching ratings within a year of deployment
  • Enhanced MI and control through the three tiered metrics structure, monthly governance meetings and strategic negotiations with brokers
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