A World Without Fails
Traders Magazine, November 2002
Traders take pride in exploiting opportunities at the speed of light. The secret may be state-of-the-art algorithms or other technology. But the keys to seamless transaction flow are straight-through-processing (STP) and effective systems integration and processing. Buyside traders should care about this because STP is the critical path to achieving the three Cs: better cost reduction/avoidance, better controls and better customer service. An estimated 15 percent of cross-border trades in today's markets fail to settle by the due settlement date. About 45 percent of those fails are the result of incomplete STP processes. These problems contribute to the $12bn annual cost of failed trades.
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