Operating Model Strategies

FITS Consulting offers clients deep expertise in defining and implementing the correct clearing model for their firm. The right clearing model is based on the firm’s strategic objectives, current and future financial metrics, and associate support. Self-clearing, fully disclosed, or omnibus models are all evaluated based on the uniqueness of the firm and fact-based analysis.

Clearing Model Evaluations
  • Current model evaluation across product offerings, staffing, and revenue/expense opportunities
  • Alignment with firm’s strategic objectives
  • Incorporate realistic forward-looking trends and volumes required to support clearing model decisions

Economic Modeling
  • Utilize proprietary tools to capture all revenue and expense items to provide a total cost of ownership
  • Prior experience with major vendors enables FITS to provide detailed system costs based on increased volumes and contract terms
  • Leverage DOL published material to forecast future staffing expenses

Target Operating Design
  • Leverage existing docs to baseline the current TOM
  • Create new TOM to reflect both processing applications, vendors, and utilities
  • Ensure TOM is sustainable and aligned with firm objectives to promote success

Workflow Optimization
  • Create process maps for operating model to determine future state changes
  • Identify controls to mitigate risk for new processes
  • Prioritize automation in processing with detailed exception handling highlighted

Vendor Selection
  • Create Request for Proposal for vendors
  • Closed ended questions to obtain yes/no answers
  • Add priority and weightings to sections and questions
  • Score across the organization
  • Present fact-based recommendations

System Rationalization
  • Provide benefits and challenges of the new system and potential impacts to the organization
  • Utilize analysis and work product to substantiate the clearing model decision
  • Detail drawbacks of clearing models not selected

Optimize Your Clearing Structure for Scalability, Efficiency, and Compliance.

Strategic Model Selection – Ensures your firm adopts the optimal clearing model (self-clearing, fully-disclosed, or omnibus) aligned with growth and operational goals.

Regulatory Readiness – Evaluates model viability in the context of FINRA/SEC requirements, including capital, margin, and customer protection rules.

Cost-Benefit Alignment – Identifies the economic implications of each model to support efficient capital allocation and long-term scalability.

Business Model Fit – Matches clearing infrastructure to your firm’s client base, service model, and product set.

Cross-Functional Alignment – Engages stakeholders from operations, finance, compliance, and executive teams for a cohesive strategy.

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