UBS and Deutsche are smooth operators

Deutsche Bank and UBS seem to be leading the way in operational efficiencies, indicated survey results by London-based research company Z/Yen.

The 2008 annual survey into operational performance revealed UBS ranks as the best broker for fixed-income operations in Europe and most improved broker in Asia. German rival Deutsche takes the accolade for best broker for client management for global over-the-counter derivatives and most improved broker in the product category, as well as most improved broker in Europe.

The results are based on responses by 171 investment managers, private banks and hedge funds, which ranked brokers on their 2008 operational performance and client service offerings across equities, fixed income and OTC derivatives.

Merrill Lynch ranked as best broker for fixed-income operations in Asia, while Goldman Sachs was voted the top broker for the same in the US. Goldman Sachs had the additional ranking of best broker for core processing of OTC derivatives.

Z/Yen said broker performance rose significantly in many areas this year, particularly in Asian markets and for OTC derivatives, indicating that, even in a troubled market environment, brokers are continually improving processing to meet client demands.

Simon Haggerty, global client service head for securities at UBS, said: "The Z/Yen survey suggests that a strong performance from operations not only enhances the service UBS provides its clients, but can also help influence business allocation."

The research company said a key feature of the survey results this year was the increased use of technology by the brokers themselves and the use of industry utilities such as those provided by DTCC, Omgeo and Swapswire for electronic trade matching.

Carsten Eckhardt, MD, investment banking operations, and Richard Neiland, MD, investment banking IT, at Deutsche Bank said: "Over the past several years, we invested substantially to improve the delivery of our operational services to clients. We improved IT platforms and reorganised operational processes with the goal of offering clients additional features, more control and quick responses to their inquiries."

The results prove particularly poignant when noting the survey was conducted during the market upheaval of September and October 2008. The survey canvassed clients in 20 countries and was commissioned by HSBC, UBS, Liquidnet, ABN Amro, RBS, JP Morgan, Merrill Lynch, Deutsche Bank, Goldman Sachs, BNP Paribas, Citi, ITG, and Credit Suisse to help prioritise customer service needs and independently assess the views of clients.

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