T+1: Making STP a Reality

As investment management firms consider the forthcoming transition to T+1, the operational impacts of halving settlement timeframes come into focus. 

We believe that a key topic underpinning the whole concept of T+1 is straight through processing. It is time for companies to reflect on their real achievements with STP in their trade processing automation – is straight through processing a reality or a myth within their firm? We would advocate that with the advent of T+1, STP is now no longer a choice for firms trading in North America and Europe. Throughout this paper, we reflect on this when assessing the changes that are occurring in our not-too-distant future.

Better STP is an opportunity for firms, not a cost. What firms need is a solution that constantly enhances the lifecycle of a trade and creates incredibly high rates of straight through processing. In this way the proportion of unsettled trades is always falling, as the solution is constantly addressing problems and creating answers.

This is what Salerio does so well. When a trade fails, firms can fix the problem so the same parameters of the trade will then go through STP. Salerio is the answer to true STP rates – no longer needing people to apply patches to a workflow that isn’t the real deal.