Acuiti GCM Review reveals customer satisfaction and client trends across the market for General Clearing Members.
London — 13 May
GH Financials and JP Morgan top the rankings for customer satisfaction levels according to the Acuiti GCM Review, the largest study of client trends and opinions of General Clearing Members across the global listed derivatives market.
The GCM Review, which is released today, is based on over 180 independent reviews of General Clearing Members covering more than 3500 data points.
The review scored 13 of the major GCMs. GH Financials topped the list of non-bank GCMs while JP Morgan was highest rated by clients among its bank peers.
GCMs were rated across 19 metrics covering functionality and customer service. The review found a wide range of customer satisfaction levels in the market.
In addition to the company reviews, the 45-page Acuiti GCM Review covers a range of topics from the true extent of consolidation among GCMs over the past two decades to customer preferences when it comes to choosing a GCM.
Will Mitting, founder and managing director of Acuiti, says: “Our review found that the commonly held narrative that there had been significant post-financial crisis consolidation among clearing providers was over-blown. In fact, concentration levels in listed derivatives have remained roughly constant since 2008.
“However, what we did find was a clear bifurcation of the market with certain company types, in particular proprietary trading groups and brokers, facing significantly less choice in the market for GCMs than the buyside and regional banks.”
The Acuiti review found that more than a fifth of firms that had changed GCM over the past three years did so because they were offboarded by their provider. Brokers were most likely to report being offboarded by their GCM.
“The higher costs of capital and compliance has forced GCMs to review their client bases and either offboard or raise fees for certain client types, further reinforcing the bifurcation of the market,” says Will Mitting.
“At the same time, increased barriers to entry and the benefits of scale in a globalised world have significantly reduced the potential for new entrants into the GCM market.
“This should be a major concern, not just for clients but also for the GCMs themselves, exchanges and clearinghouses, all of whom are rightly increasingly concerned about concentration risk.”
The Acuiti GCM Review is available to purchase here from today.
The Review is the largest independent review into customer satisfaction and trends relating to the provision of clearing services in the listed derivatives market. All respondents to the study were independently sourced by Acuiti.
For more information, contact Will Mitting
Tel.: +44 (0) 203 998 9190
Acuiti is a management intelligence platform designed to provide senior executives with unparalleled insight into business operations and industry-wide performance. Acuiti helps identify market trends, enhance decision-making and benchmark company performance. The platform anonymises and aggregates information from its exclusive network of senior industry figures to provide insightful in-depth analysis.