Straight Through Processing

Straight Through Processing (STP) enables the entire trade process to be conducted electronically without the need for re-keying or manual intervention. Presently, the entire trade lifecycle, from initiation to settlement, is a complex labyrinth of manual processes, taking several days. STP is at least 'same-day' or faster, ideally minutes or even seconds. The goal is simultaneous. STP solutions are needed to help financial markets firms meet the move to one-day trade settlement (T+1), as well as to meet the global demand that has resulted from the explosive growth of online trading. When fully realized, STP will provide asset managers, broker/dealers, custodians and other financial services players with tremendous benefits, including greatly shortened processing cycles, reduced settlement risk and lower operating costs.

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Straight Through Processing

 

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