How SGSS cut IT complexity and costs through OTC derivatives consolidation

Societe Generale Securities Services (SGSS) is a leading European securities services provider, managing EUR 5,396 billion in assets under custody across 19 locations worldwide1. The firm provides comprehensive securities services to financial institutions, asset managers, and insurers, including CrossWise - an integrated front-to-back outsourcing solution designed for mid-market investment managers. After years of successfully using SimCorp's platform for both listed and OTC products for its CrossWise clients, SGSS identified an opportunity to strengthen its offering by consolidating all OTC derivatives processing on SimCorp's platform, now covering more than 40 different OTC products.

Business case

After years of successfully leveraging SimCorp's platform for cross-asset processing within CrossWise, SGSS identified an opportunity to streamline its OTC derivatives processing model. While CrossWise OTC processing already ran on Simcorp, a separate middle-office chain based on a best-of-breed platform was used for standalone OTC mandates. The dual architecture introduced operational complexity and limited SGSS’s ability to deliver a fully unified cross-asset experience across its entire client base.

The decision to consolidate OTC derivatives onto SimCorp's platform was driven by several strategic imperatives:

Platform rationalization
SGSS aimed to build a fully integrated view across the entire value chain, unifying OTC derivatives with listed products. By moving toward a unified platform, SGSS sought to enhance operational agility, streamline the value chain end-to-end, and support asset managers with richer, more coherent portfolio insights—all while optimizing long-term cost efficiency.

Data quality and governance
SGSS’s objective was to establish a single, robust data architecture capable of delivering consistent, high-quality information in real time. By centralizing data governance, SGSS planned to strengthen decision-making, improve transparency throughout the investment lifecycle, and elevate the quality of both internal operations and client servicing.

Operational efficiency
To unlock greater autonomy and expertise across teams, SGSS set out to bring derivatives processing into a unified operating framework. The ambition was to foster deeper knowledge sharing, increase straight-through processing, and boost internal efficiency—ultimately enabling teams to deliver even higher quality service to clients while developing more holistic quality service to clients while developing more holistic multi-asset expertise.

Enhanced client offering
Recognizing the growing demand from investment managers in the mid-market segment for streamlined, multi-asset operational solutions, SGSS sought to enhance the value proposition of CrossWise. Consolidatingasset operational solutions, SGSS sought to enhance the value proposition of CrossWise. Consolidating services onto a single, versatile platform would allow SGSS to offer more efficient, simplified, and scalable solutions, strengthening its role as a partner of choice for clients seeking operational excellence.

Solution

Building on a successful partnership, SGSS selected SimCorp to consolidate its OTC derivatives processing and create a unified middle and back-office solution across all asset classes. The transformation project focused on centralizing these activities on SimCorp's Investment Book of Record (IBOR).

Unified platform architecture
SimCorp replaced SGSS's best-of-breed solution, consolidating listed and OTC derivatives on a single platform. This included more than 40 different OTC products — from standard instruments to complex derivatives including barrier options, correlation swaps, volatility swaps, and inflation-linked products — with existing listed products. This demonstrated SimCorp's capability to seamlessly handle diverse asset types with broad functional coverage and strong OTC processing capabilities, creating one source of truth across the value chain.

Seamless migration approach
SGSS worked closely with SimCorp throughout the implementation to ensure smooth integration of OTC products into the platform. The migration was carefully planned to minimize client impact, with particular attention to maintaining service continuity and data integrity. The collaborative approach between teams ensured that the platform was properly configured to support SGSS's specific workflows and client requirements.

Enhanced CrossWise capabilities
By consolidating middle and back-office operations onto SimCorp's comprehensive platform, SGSS can now provide more streamlined services with improved automation and data consistency across all asset classes.

Strategic governance framework
SGSS and SimCorp established a strengthened governance structure focused on three key pillars: service quality, product evolution, and strategic alignment. Regular executive meetings ensure proactive collaboration on platform enhancements, digitalization initiatives, and long-term strategy rather than reactive problem-solving.

"We worked closely with SimCorp consultants to integrate OTC products smoothly into the platform," notes Bonte. "The go-live was successful and the positive experience reflected the strength of our partnership."

Business benefits

SGSS experienced measurable improvements across operational efficiency, cost management, and client service quality.

Operational efficiency and cost reduction
The unified platform transformed how SGSS teams work. Teams now operate on one integrated system instead of managing multiple fragmented platforms, improving knowledge sharing and operational efficiency. Payment processing and settlement workflows became more streamlined through automation, reducing manual intervention and operational risk. The consolidation also helped SGSS significantly reduce IT complexity, lower maintenance costs and improve system stability. The simplified architecture reduces total cost of ownership with a single licensing cost, reduced infrastructure requirements, and more efficient support models.

Enhanced client service and retention
SGSS successfully migrated all OTC mandates to SimCorp, maintaining 100 percent client retention and demonstrating successful change management and service continuity. Client satisfaction scores improved following the platform consolidation, reflecting enhanced service quality and operational stability. CrossWise clients now benefit from a more integrated, efficient platform that supports comprehensive processing across all asset classes while helping them meet regulatory requirements. SimCorp’s IBOR provides SGSS with a single source of truth across the investment lifecycle, improving data quality, reducing reconciliation requirements, and enabling real-time transparency for both internal operations and client servicing.

Strategic partnership and future readiness
The successful OTC migration marks a critical milestone in SGSS's transformation journey, enhancing the partnership with SimCorp further. Governance discussions focus on future platform capabilities, digitalization opportunities, and long-term strategic alignment. With operational complexity reduced, SGSS can focus resources on innovation and new service development.