Rabo Securities -
ON THE MOVE
networking
In early June, Rabobank's corporate banking division
finally occupied its glittering new premises in
Rembrandt Tower, Amsterdam's tallest office block. At
the same time, it formally changed its name from Rabo
Effectenbank to Rabo Securities NV.
Andries Mak van Waav
Together, these moves are a fitting reflection
of the fact that the company has now firmly
established its position on the skyline of
Duteh corporate banking. They also
symbolically mark the end of an internal
transformation - first set in train by the
acquisition of Swiss Bank Corporation's
(SBC) Amsterdam operation last year - and
the start of a new phase of growth. 'An
enormous amount of energy has been put
into integration of our separate corporate
cultures,' says Andries Mak van Waay, who
is the joint managing director of Rabo
Securities together with Dick de Bruijn.
'Our move reflects the fact that the SBC-
Rabo harmonization is now complete. We
have established a coherent identity on
which to build.'
PRACTICAL SPACE
The move also reflects a highly practical
consideration: after delivering a solid record
of accomplishment over the past year,
business is booming for Rabo Securities,
and the company needs space for its further
development. The Rembrandt Tower - a
stepped pyramidal building - is a welcome
solution. 'We were invited to take a place
right at the top of the building,' says Mak
van Waay. 'This might've been very
prestigious but we decided instead on two
floors in the widest part of the base. We
needed the largest possible area to construct
a really practical dealing room. As you
know, our traders cover world stock
exchanges, options markets, futures, and
over-the-counter products. It is crucial for
them to have a clear and unobstructed view
over all of their colleagues at all times. This
way, if the Bundesbank shifts D-Mark
interest rates or if the Tokyo market starts
coasting up or down, everyone is
immediately alert to the change.'
KILOMETRES OF CABLES
Hence, the decision to group all the traders
on the same floor. Once this decision was
taken, practical considerations prevailed.
For example, high ceilings were essential
because of a special cooling system and
many kilometres of wires and fiber optie
cables needed to support the new high tech
trading consoles. There also had to be
sufficiënt space to accommodate a growing
number of traders: their numbers have
grown by 50 percent in the last year to
reach almost 60 today. When a new screen
based electronic dealing system is
inaugurated at the Amsterdam options
exchange, moreover, Rabo market makers
who now work on the EOE floor are likely
to move into the Rembrandt Tower as well.
OUTSELLING THE COMPETITION
Over the past year, Rabo Securities has built
a solid base from which to make its next
bold step. Included among its recent
milestones are the co-lead management of
the second tranche of Royal Dutch PTT
(KPN), the Vendex flotation, plus the highly
successful public offering of Van Leer. The
latter deal, finalized in May, unequivocally
demonstrated the strength of Rabobank's
placement capacity and firmly established it
RABO EFFECTEN-
BANK - STERK IN
BEWEGING
Begin juni verhuisde de
Rabo Effectenbank naar de nieuwe Rem-
brandttoren in Amsterdam. Dit luidt de start in
van een nieuwe groeifase.Vanuit de dealing-
room wordt wereldwijd gehandeld op de
aandelen- en optiemarkten, alsook in futures
en over-the-counter producten. De Rabo
Effectenbank speelde een belangrijke rol bij
de recente beursintroducties van KPN, Vendex
en Van Leer. Andries Mak van Waay vindt een
co-lead managers positie nog niet voldoende.
Het wordt nu tijd om een mandaat te krijgen
als lead manager. REB is bezig met een
uitbreiding in de vorm van een eigen research
afdeling, die zich zal richten op geselecteerde
sectoren, waaronder Transport en IT.
among the top three players on the Dutch
market. Rabo Securities substantially
outperformed all its main domestic
competitors, it outsold at least one of the m
global coördinators, and it placed over four™
times its overall underwriting commitment.
PURSUING MANDATES
'These co-leads were a solid reflection of
what we can do. They brought us exposure
and fine-tuned our placement capabilities.
Now, the moment of truth has arrived. We
are absolutely resolved to win a mandate to
lead.' Organizing and managing such a
mandate will bring new challenges to the
Rabobank Securities operation, Mak van
Waay acknowledges, but it also promises to
bring much higher revenue streams. As the
corporate bankers are pursuing this full
mandate, the rest of Rabo Securities will not
be standing still. Plans call for a
strengthening of its position among
international and domestic institutional
clients as well. Institutional research teams M
increasingly need to be close to the market.
Mak van Waay says; they need to work
physically nearer to the trading teams.
Hence, the need to develop an own research
team in Amsterdam. This research team will
concentrate on several selected market
sectors including transportation and IT,
while retail research experts within IRIS,
Rabobank's joint venture with Robeco, will
remain in place.
REAL COMMITMENT
Another change that will follow this month's
move is an upgrade of the back office
functions. The ratio of front to back office
staff at Rabo Securities is an extraordinary
three to one. 'The people we have are
extremely committed and knowledgeable,'
Mak van Waay says. Nevertheless, despite
their remarkable efficiency, the back office i^
now operating at close to the limits of its
capacity. New automation systems will help
the existing staff cope with the increase in
business to come.
