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RoadMap for STP and Real Time Trade Processing

A new RoadMap for STP and Real Time Trade Processing

The implementation of STP procedures will require behavioral and
environmental changes within the front- and back-offices of investment
management firms. In effect, the back-office moves to the
front-office. To achieve STP firms need to rethink the current front- and
back-office operating models. As trading windows shorten, any manual
intervention results in costly delays. The GSTPA estimates that 80% of the
STP problems experienced by firms are internal and only 20% of the STP problems
are between firms. The use of fax and voice messaging to relay information
is too time consuming in today’s market. In addition, the constant manual
rekeying of data into multiple systems is archaic in a 24/7 trading world.

Firms first need to identify all of the participants in its trading
cycles. A focus within the front-office should be on automating the
indications of interest and notice of execution with broker/dealers. In
addition, automated confirmation of trades would continue to streamline the
process.

STP Trading Systems Implementation Tips

Need more information? Contact Victor Smith

posted by Victor Lloyd Smith @ 9:29 PM