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Straight Through Processing

Straight Through Processing (STP)

The benefit of straight through processing, or STP, is that it enables banks to automate settlement activities which in turn improves operational efficiency and better manage trade related risks.

The bottom line is straight through processing (STP) drives down operational costs and improves trading efficiencies.

Case Study:

SunGard Treasury Systems, eTreasury eXchange and Deutsche Bank

"SunGard treasury management users can initiate foreign-exchange deal requests from within existing treasury applications, automatically receiving bid/offer prices directly from the Deutsche Bank platform.

When the trade is executed, the confirmation and settlement take effect automatically, resulting in straight-through processing (STP). 

STP reduces errors by eliminating manual processes, reduces operating costs and increases trading efficiencies." - www.sungard.com

Related Websites

Links to other information technology banking resources.


Information Technology for Banks

Banking Technology - Resource for Banks and Financial Institutions
Online resource on information technology solutions for banks and financial companies. Buyer's guide to banking applications, crm, risk management systems and more.

 

Example of STP

Portfolio manager originates an order on the buy side.

His trader sees it on his screen.

Relays to a broker.

Broker executes and tickets via computer.

Goals of STP

Computers to handle purely repetitive tasks.

People to monitor and deal with errors.

Technology

Financial Information eXchange (FIX) - open messaging standard for global electronic trading

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