ADP has won a long term contract to provide hosted custody and clearing services to TD Waterhouse subsidiary National Investor Services Corporation (NISC).
NISC has signed up to ADP's Operations Outsourcing service, which offers multiple permutations for self-clearing brokers to farm out any or all of the operational functions of trade clearance, settlement and custody.
Under the terms of the agreement, ADP will provide NISC with outsourcing services for a variety of clearing and custody related functions.
NICS is the second client to be signed ADP Clearing and Outsourcing Services since the vendor acquired Bank of America's US Clearing and BrokerDealer Services units in June last year. In November, New York brokerage firm Murphy & Durieu outsourced clearing and settlement of equities and fixed income transactions for both its retail and institutional businesses to ADP.