Case Study: Jefferies achieves 90% market‑data cost savings and deeper, faster client risk insights with IBM Managed Data and Algo Risk Service on Cloud

Unlocks huge cost savings and offers deeper insight to clients with market data from IBM

Jefferies, a global investment bank with a large Prime Brokerage business, needed to give hedge-fund clients deeper, more accurate daily risk insights while cutting the high cost of market data. To do this, Jefferies replaced its incumbent provider with a managed data service from IBM that integrates with IBM Algo Risk Service on Cloud to deliver daily risk metrics and stress tests.

IBM’s managed data service plus IBM Algo Risk Service on Cloud enabled Jefferies to improve data quality and automate nightly risk reporting, cutting reliance on the previous market‑data vendor by 90% and shortening overnight cycles by 20% (about one hour). The change produced major cost savings, allowed Jefferies to offer risk reports and expanded special margin rules to many more clients at no extra cost, and provided capacity to handle roughly 50% more data while maintaining on‑time delivery.

Jefferies

Ehab Sorial

Senior Vice President, Prime Brokerage Technology