LONDON, November 17, 2010 — A new independent study published by Pershing Limited, a BNY Mellon company, and Investance UK plc investigates the drivers behind the growing trend of outsourcing key elements of the investment banking supply chain and how the tightening regulatory climate may be accelerating this trend.

The study, entitled "European Equities: The Advent of the Virtual Investment Bank," examines the changing service provider landscape and considers the impact these changes will have on the European investment banking industry, and in particular on the specialist and more nationally oriented players.

Topics covered in the study include:

• The drivers for outsourcing different components of the investment banking supply chain, with particular emphasis on research, execution and post trade services;
• Analysis on the impact of European regulation and how this continues to affect the European equities landscape;
• The increasing demands on specialist investment banks to offer a full service, whilst retaining focus on their core areas of expertise; and
• How relationship banking is driving client loyalties as the industry prepares for the advent of virtual investment banks.

The study is a component of Pershing's thought-leadership programme, commissioned by Pershing and independently executed by Investance.  The analysis is based on in-depth industry research and detailed interviews with leading industry figures and delivers a perceptive view of the evolving European equities asset class.  

Scott Coey, director and head of Institutional Broker-Dealer Relationship Management at Pershing Limited said, "One clear finding in this study is that regulatory change is fostering a greater reliance on external service providers. Whether through enhanced integration of front- to back-office functions or delivering greater transparency to investors, institutional broker-dealers will increasingly look to these value-added services to remain viable in the years ahead."

Roger Braybrooks, Head of UK Consulting at Investance said, "The results suggest that broker-dealers of all types should remain open-minded to best practices from across the industry. Newer niche companies should be looking to emulate the strengths of traditional banks, including their powerful brands and scalable processes. Traditional banks, meanwhile, should be looking to build up and demonstrate the capabilities in newer investment strategies and to increase their ability to react quickly to market changes and opportunities."

To receive a copy of the study or to learn more about Pershing's solutions for institutional broker-dealers, please contact Susannah Graham at +44 (0)20 7864 8924 or susannah.graham@pershing.co.uk.  

Pershing Limited provides broker-dealers, asset managers, intermediary firms, Independent Financial Advisers and financial institutions across Europe with a comprehensive range of products, services, and solutions including retail clearing, fully disclosed institutional global clearing, broker services, and trading services.  Established in London in 1987, Pershing Limited and its subsidiary, Pershing Securities Limited, are members of the London Stock Exchange and Euroclear UK & Ireland.  Pershing Limited has memberships with LCH.Clearnet EquityClear and SWX Europe.  Pershing Securities Limited is a member of Deutsche Borse, Eurex Clearing, and Clearstream.  Pershing Limited is an affiliate of Pershing LLC, a leading global provider of financial business solutions to more than 1,150 institutional and retail financial organisations and independent investment advisers who collectively represent over five million active investors. Pershing LLC (member FINRA/NYSE/SIPC) is a member of every major U.S. securities exchange, and a subsidiary of The Bank of New York Mellon Corporation.  Additional information is available at www.pershing.co.uk.

BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets.  BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has $24.4 trillion in assets under custody and administration and $1.14 trillion in assets under management, services $12.0 trillion in outstanding debt and processes global payments averaging $1.6 trillion per day.  BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available at www.bnymellon.com.