ADP 2006 Annual Report Download - page 18

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Continued growth in our investor communications business, strong trade volumes in the back office, increased
sales, and strong client retention throughout Brokerage Services contributed to a year of positive performance.
Brokerage Services posted revenue growth of 11% for the year, which includes the first full year of operations for ADP
Clearing & Outsourcing ServicesSM.
BACK-OFFICE PROCESSING
Brokerage Services processed a higher volume of equity trades this year. Institutional, retail, and Internet trade vol-
umes all grew year over year, while average revenues per trade continued to decline due to both trade mix and
higher volumes from our largest institutional clients. Client retention was positive and new sales were strong.
We also expanded our margin by leveraging the high scalability of the business.
SECURITIES CLEARING AND OPERATIONS OUTSOURCING
An important new component of our back-office business, ADP Clearing & Outsourcing Services creates a BPO offering
that serves retail and institutional businesses in the financial services industry. It enables us to create a full-service
back-office solution and is a vital part of the growth strategy for the back-office business. ADP Clearing &
Outsourcing Services completed its first full year with a growing client list and an active sales pipeline. This business
provides two BPO-like options:
> The Clearing solution enables clients to outsource their entire back-office function while using ADP’s balance
sheet to finance inventory and margin balances. Entering the Clearing business enables Brokerage Services to
offer an end-to-end solution to approximately 4,000 smaller broker-dealers that desire a single source to process
and clear their trades.
> The Operations Outsourcing solution allows brokers of all sizes to outsource the administrative functions of trade
processing – from order entry to clearance and settlement – to ADP, while maintaining their ability to finance and
capitalize their businesses.
Reliable, scalable, and cost-effective, ADP Clearing & Outsourcing Services has gained excellent market traction in 2006.
INVESTOR COMMUNICATIONS
As the market’s leading provider of investor communications, including proxy mailing and vote processing services, ADP
helps thousands of public companies and mutual funds communicate and conduct business with their shareholders.
This year, our investor communications business realized increased revenue from a higher volume in mutual fund
mailings and strength in our “beyond beneficial” products — primarily transaction processing of statements and
confirms. In fiscal 2006, we tabulated more than 100 million shareholder ballots.
We continue to expand our global proxy service capabilities. For example, this year the electronic proxy voting plat-
form implemented as part of our joint venture with the Tokyo Stock Exchange and the Japan Securities Dealers
Association became fully operational. Based on ADP’s ProxyEdge®, our automated proxy management service, this
solution provides a Japanese language voting platform with Japanese content for local investors, and is fully inte-
grated with our global proxy voting platform.
Client retention in our investor communications business continues at strong historic rates.
Brokerage Services