ADP Completes Acquisition of Bank of America's Clearing and BrokerDealer Services

Strategic Insights -

ADP, a division of Automatic Data Processing, Inc., has completed the acquisition of the U.S. Clearing and BrokerDealer Services units of Bank of America Corporation, creating a new business unit called ADP Clearing & Outsourcing Services. This move enables ADP to expand its solution set to include correspondent clearing and operations outsourcing services, providing a comprehensive three-tier service offering for the industry. ADP's new strategy will allow any brokerage firm to select the appropriate range of outsourcing services, from service bureau to operations outsourcing or correspondent clearing services, on a single technology platform.

Key Takeaways:

  • ADP has completed the acquisition of U.S. Clearing and BrokerDealer Services units of Bank of America Corporation, creating ADP Clearing & Outsourcing Services.
  • The new business unit is a member of the New York Stock Exchange and offers correspondent clearing and operations outsourcing services to retail and institutional introducing broker clients.
  • ADP's three-tier strategy enables the company to provide a comprehensive solution for the industry, from service bureau to operations outsourcing or correspondent clearing services.
  • The acquisition allows ADP to provide economies of scale benefits to clients, including financing functions, and to capitalize their business as desired.
  • ADP Brokerage Processing Services (BPS) is the industry-leading back-office service bureau, offering real-time securities processing systems and desktop productivity applications for the financial services industry.
  • ADP has 550,000 clients and generates $7.8 billion in annual revenues, making it one of the largest independent computing services firms in the world.

Statistics:

  • ADP generates $7.8 billion in annual revenues.
  • ADP has approximately 550,000 clients.
  • The new business unit, ADP Clearing & Outsourcing Services, is a member of the New York Stock Exchange.
  • The acquisition of U.S. Clearing and BrokerDealer Services units of Bank of America Corporation has expanded ADP's solution set to include correspondent clearing and operations outsourcing services.

Sources:

  • Automatic Data Processing, Inc. press release, no date provided.
  • ADP Brokerage Services Group web site, no date provided.