ICBCFS | Services Strategy
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Services Strategy

The number of clearing firms servicing institutionally oriented Introducing Brokers has dwindled to a handful. Those firms remaining in the clearing business tend to pursue a business model that is scale-driven. Their service strategy—how they treat clients—is driven by the economics of their business model. This model tends to favor high volumes and replaces qualified people with one-size fits all automation.


ICBCFS differentiates itself on many fronts

  • We do not use Call Centers. Instead, each client has direct access to an experienced team of experts to support their business.
  • Our technology is modern and innovative. It’s been developed during the last decade and is scalable from supporting the smallest to the largest of clients.
  • Our technology is also “open” architected, and offers a fully integrated and robust set of features.This allows for a compressed over-night cycle, resulting in a more efficient user experience. It also makes it easier to support customized reporting.
  • ICBCFS can be a single point of entry to global clearing and settlements. We manage our clients complexities and nuances, rendering the process more efficient while reducing their risk. In addition to our memberships in the major U.S. clearing corporations, we also have access to local market settlements capabilities worldwide via SWIFT, including European Central Counterparties and Multilateral Trading Facilities.

Fully Disclosed Clearing Services

  • ICBCFS supports clients in a highly controlled and efficient Straight-Through-Processing environment for matching, clearing, settlement and custody.
  • Access to margin financing and securities lending capabilities.
  • These services are available on a global basis  for clients  whose businesses require either full service—clearance and custody or are “RVP/DVP” in nature.

Agent in Fixed Income Transactions

Depending on client needs, ICBCFS can act in the role of “agent”, to provide one-stop solutions for post-trade operations.

As agent ICBCFS:

  • Processes the transactions so that the client assumes all associated liabilities and risk
  • The client receives all the core operational benefits that ICBCFS can deliver through a clearing relationship
    • All matched trades settle per instructions
    • Delivery/Receipt vs. Payment
    • Fails are reported same day
    • Intra-day on-line access to settlement details (pending/settled) by depository and/or counterparty
    • New position and performance statements generated both intra-day and daily
    • Custody and corporate actions
    • Finance client positions

Prime Brokerage Services

Small hedge funds have been forming at a pace not seen in years. This trend presents a significant opportunity for certain Introducing Brokers, working with ICBCFS . It can enable these firms to expand and deepen their relationships with hedge funds beyond execution and into asset aggregation and servicing.  This arrangement will create the basis for “stickier” and more permanent relationships.

ICBCFS provides Introducing Brokers the following benefits, including:

  • The ability to work with a strong global partner, which can provide greater comfort to counterparties
  • Access to cost-effective processing and “white label” technology
  • Customized servicing options
  • Access to our “know-how” and “tool-kit” to operate a successful middle office. These capabilities  include various resources that can be extended to the Introducing Broker’s hedge fund clients.

Execution Services

  • We offer our customers access to a suite of sophisticated execution algorithms and the opportunity to interact with an experienced high touch institutional agency trading desk for US equities.  We do not make markets, trade proprietary or route orders to affiliated broker-dealers. Our goals are aligned with our customers, to seek best execution.
  • The execution algorithms provide our customers with various benchmark strategies, liquidity strategies and access to all major exchanges as well as dark pools. The routing access available to our customers offers opportunities to seek price improvement and improve performance against various execution benchmarks. For more information please visit Execution Services.

NOTICE

On November 8, 2023, U.S. Eastern Time (November 9, 2023, Beijing Time), ICBC Financial Services (FS) experienced a ransomware attack that resulted in disruption to certain FS systems. Immediately upon discovering the incident, ICBC FS disconnected and isolated impacted systems to contain the incident. ICBC FS has been conducting a thorough investigation and is progressing its recovery efforts with the support of its professional team of information security experts. ICBC FS has also reported this incident to law enforcement. We successfully cleared US Treasury trades executed Wednesday (11/08) and Repo financing trades done on Thursday (11/09).

ICBC FS's business and email systems operate independently of the Industrial and Commercial Bank of China Group. The systems of the ICBC Head Office and other domestic and overseas affiliated institutions were not affected by this incident, nor was the ICBC New York Branch.

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