OPPapers.com Essay Index >> Technology >> Straigth Through Processing
We have many free term papers and essays on Straigth Through Processing. We also have a wide variety of research papers and book reports available to you for free. You can browse our collection of term papers or use our search engine.
Straigth Through Processing. Straight Through Processing 3 Introduction
3 History 4 The Trading Process 6 Challenges 8 Settlement ...
Submitted by baileyboy624 on December 11, 2005
Category: Technology
Words: 2118 | Pages: 9
Views: 168
Popularity Rank: 72,169
Average Member Grade: N/A (Add a Comment / Grade this Paper)
Straight Through Processing 3
Introduction 3
History 4
The Trading Process 6
Challenges 8
Settlement Solutions 9
Payment 10
Timetable for Implementation 11
My Thoughts 12
References 13
Straight Through Processing
Introduction
Straight Through Processing (STP) touches many facets in the Financial Markets. I will examine STP from a financial market point of view (namely the AMEX, specifically Equities trading) and also from a Firm's position.
The Securities Industry Association (SIA) defines STP as "The process of seamlessly passing financial information to all parties involved in the transaction process, spanning the investment manger decision through to reconciliation and statement production, without manual handling or redundant processing in real-time" . When fully implemented, STP will provide operational efficiencies, regulatory compliance, lower costs, enable higher transaction volumes, reduced head-count, and improved customer service. Presently it is estimated that 42% of all trades are still conducted on a paper basis . All of this manual intervention increases costs, requires higher staffing levels, and opens the door for human error. STP will mitigate operational risk and improve performance and will become a necessary condition of doing business in a streamlined globally driven securities industry. This initiative is a formidable one because it represents a radical rethinking of the technology and processing infrastructure for all participants.
History
In the late 1960's and early 1970's the volume of transactions at the New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX) was growing at a tremendous rate. The shear volume of paper that was generated each day and the physical effort that was required to execute, compare, and report the trades was slowly crushing the industry. In July of...
You must Login to view the entire paper.
If you are not a member yet, Sign Up for free!