Jefferies Unlocks huge cost savings and offers deeper insight to clients with market data from IBM
Company Size
1,000+
Region
- America
- Asia
- Europe
- Middle East
Country
- United States
Product
- IBM® Algo Risk® Service on Cloud
Tech Stack
- Cloud Computing
- Data Analytics
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Productivity Improvements
Technology Category
- Analytics & Modeling - Predictive Analytics
- Analytics & Modeling - Real Time Analytics
Applicable Industries
- Finance & Insurance
Applicable Functions
- Business Operation
Use Cases
- Predictive Maintenance
- Supply Chain Visibility
Services
- Data Science Services
About The Customer
Jefferies is one of the world’s leading financial institutions, offering a broad range of products and services spanning investment banking, equities, fixed income and wealth management to clients in the Americas, Europe, the Middle East and Asia. The company's Prime Brokerage business serves numerous mid-size and large hedge funds. Headquartered in New York, the company has offices in over 30 cities worldwide, employs 3,300 people, and holds USD 11.4 billion in long-term capital.
The Challenge
Jefferies, a leading financial institution, was under pressure to defend its market share and sharpen its competitive edge in challenging times for the Prime Broker industry. The company aimed to enhance its offering by providing hedge-fund clients with deeper, more accurate insights into risk across their portfolios at lower cost. The company was looking for ways to improve its reports detailing the risk exposure across their portfolios, by incorporating more detail and raising accuracy. The company was also looking to reduce its reliance on its incumbent market-data provider.
The Solution
Jefferies decided to replace its incumbent market-data provider with a managed data service from IBM. The service integrates with Jefferies’ existing IBM® Algo Risk® Service on Cloud solution to provide daily risk metrics and stress tests for each client’s portfolio. The data also helps Jefferies manage its own business and ensure that it is striking the appropriate ongoing balance between risk and reward. Every evening after close of business, Jefferies sends IBM a preliminary snapshot of the day’s holdings, before compiling and transferring the full data a few hours later. IBM Algo Risk Service on Cloud crunches the data to produce comprehensive risk reports, detailing each client’s holdings alongside various risk metrics and stress tests. IBM sends the data to Jefferies, which generates reports and sends them to its clients, ready for them to digest before the new day’s trading commences. Jefferies also uses the data for its own risk-assessment processes.
Operational Impact
Quantitative Benefit
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