A keep post-trade communications simple and efficient with straight-through processing

By: Van Nguyen

In the securities industry, lack of systems integration, little external connectivity, limited IT resources, and an incompatibility of data formats all negatively impact the post-trade communications process, compliance, and reconciliation.

Trade communications typically operate within multiple formats (e.g. SWIFT, PDF, FAX, XML) that are time consuming and costly to manage. In a manually operated environment, it is common for trades to not settle according to deadlines; the time spent rectifying these issues and compensating the injured party often leads to substantial fees to be paid (depending on the size of the transaction).

Straight-through processing eliminates unnecessary workload and the risk of critical errors; it allows brokers and custodians to receive or submit quality data from anywhere in the world with no risk. To enable straight-through processing, costly middleware is often required to translate proprietary messages into industry-standard formats (e.g. 15022, ISITC, and FIX).

The global trade communications network from SS&C links investment managers, broker/dealers, clearing agencies, custodians, and interested parties, making the adoption of industry standard participant codes (e.g. BICs, DTCIDs, Euroclear numbers, etc.) simple and efficient. Our global trade communications network reduces operational risk and costs through its easy-to-use, built-in virtual trade matching and delivery instruction database for SWIFT communication with custodians.

The network captures multiple proprietary formats and streamlines communications into industry-standard formats. SS&C brings a unique combination of subject matter and IT expertise to make adoption and integration as seamless and efficient as possible. SS&C also offers various solutions in the form of Software-as-a-Service (SaaS), which is a testament to the confidence we have in our own solutions.

To learn how we can help you, contact us at solution@sscinc.com or read “Automation Part 1, 2 and 3.”