Ten months after striking a strategic partnership, Delta Capita has acquired The Field Effect, creating one of the larger specialised consultancies service providers in prime brokerage, securities finance and collateral management.
“The combined capabilities of both businesses creates a leading player in the market, at a time when the industry is experiencing unprecedented levels of change,” commented Joe Channer, Delta Capita’s founder and chief executive.
Among the changes sweeping through the securities finance industry are heightened competition and regulatory pressure, including the impact of the Securities Financing Transaction Regulation (SFTR), a regulation that has been designed to increase the transparency of securities financing transactions (SFTs). “SFTR is a very significant piece of regulation impacting almost every aspect of the trade lifecycle, and so around 60% of related processes are impacted by the regulation,” said Channer. He added that the regulatory-driven change will require a transformational approach, blending change in operating models, data engineering, process and governance, as well as in technology solutions.
To successfully address such gaps, organisations will “need a service provider that understands these challenges and has the right expertise at scale and with global reach to help them respond,” added Channer. “With The Field Effect on board, Delta Capita is that partner.” The combined business will offer pre- and post-trade strategies, operating model designs and business cases, programme management, data and technology delivery.
The joining of forces also enables Delta Capita to establish and develop a securities finance managed service platform – a move which is strategically aligned to the firm’s ongoing investment in managed services across the financial services arena. The consulting firm, for instance, runs the structured products business of Credit Suisse EMEA as part of an outsourcing agreement, and more broadly, acts as a managed services provider to groups of institutions (consortia) on areas such as equity trading (e.g. the Plato partnership), clearing and collateral management, and KYC and AML.
“Our securities finance managed service platform will help financial services institutions simplify, innovate and reduce cost through a mutualised industry standard platform,” said Channer.
Commenting on the transition from a partnership into a sale, David Field, Managing Director of The Field Effect, said: “To support our clients’ needs we see value in accessing Delta Capita’s consortium and utility experience, global reach and service agreements with major market participants. As we grow it makes sense to combine these capabilities to produce a seamless service for existing clients and create new opportunities for the combined group.”
Field founded the consultancy in 2014 following a 20+ year career in financial services. Previously, he was an Executive Director at investment banking firm Rule Financial, and was a Director at TCA Consulting, where he headed the company’s wholesale & investment banking practice. The transition sees him join Delta Capita’s Executive Committee and become the lead of the combined prime services and securities finance practice.
Delta Capita is headquartered in London. The fast-growing consulting firm, which is dedicated to the financial services industry, has further offices in mainland Europe, Asia and Africa, serving clients globally.