"Pricing in today's marketplace is highly competitive with razor thin margins," said Brian Hyndman, president, Brut, LLC. "By offering our clients and the industry a lower take-out rate we are lowering trading costs and creating a more optimal marketplace for all industry participants. Being part of SunGard has allowed Brut to maximize efficiencies and pass the savings directly to our customers, resulting in a true win-win."
Since SunGard's acquisition of Brut, LLC in August 2002, Brut's market share has grown from 4 percent to over 8 percent*. In addition, Brut has made a multi-million dollar investment in Sun Microsystems technology in order to upgrade its infrastructure, improve its speed and reliability, and increase capacity from 2 million to 12 million orders per day.
Mr. Hyndman added, "It is through these and other initiatives that have allowed us to greatly improve our operational efficiency and reduce our cost structure, operating with less than 60 employees whereas some of our competitors have over 1,000. This allows Brut to be the low-cost execution utility for the trading community, and this price reduction reflects how SunGard turns internal efficiencies into value for our customers."
Mark Minister, group chief executive officer, SunGard Financial Networks and Brokerage Services, added, "We were able to help Brut leverage SunGard's resources and maximize synergies with its BRASS order management system and Phase 3 securities processing system . In addition, Brut recently partnered with EnForm, another SunGard operating unit, to help Brut develop a roadmap to process up to 30 million orders per day. This clearly demonstrates the value proposition of SunGard's operating units working together to maximize efficiencies and synergies."
* Note: For a description of how we calculate our Nasdaq transaction volumes and market share, see "Nasdaq Volume and Market Share Calculation Methodology" which is available at http://www.ebrut.com/marketshare.html .
