Straight Through Processing: An Overview

September 20, 2001

Abstract

 

Boston, MA, USA September 21, 2001

Straight Through Processing

Celent estimates that typical large US Broker/Dealers will spend over US$300 mn each on Straight Through Processing

In a new report entitled  , Celent Communications provides a much needed overview of STP in the securities industry. This report sets the stage by giving an overview of STP: what it means, where various types of industry participants stand in their deployment of STP systems, and what we can expect to see in coming months and years. This report is intended to provide a broad overview of STP throughout the US securities industry.

"While STP has become a fixation in the securities industry, there is a need to clearly delineate what it means, how market participants are approaching this area" states Octavio Marenzi, author of the report. "This is particularly true in light of the billions of dollars that will have to be spent to make STP and T+1 a reality in the coming years. Large broker/dealers will have to spend in excess of US$300 mn each over the coming years to prepare themselves."

This report shows how market participants, including the buy side, sell side, custodians, exchanges and depositories are reacting, and assesses their overall state of readiness. The report goes on to discuss the various approaches to achieving STP, the challenges ahead, as well as the level of spending and expected returns from STP.

"Although there will have to very significant investments in STP in coming years, these investments will be far outweighed by the benefits to US securities firms" Octavio Marenzi continues.

A Table of Contents is available online.

 

 

of Celent Communication's Institutional Securities & Investments research service can download the report electronically by clicking on the icon to the left.

 

        

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Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

 

Boston, MA, USA September 20, 2001

      

Return to Abstract

 

INTRODUCTION 3

 

Key Drivers Encouraging Adoption of STP

4

CHALLENGES TO ACHIEVING STP 6
  Challenges to Trade Participants 7
PROGRESS ON T+1 10
INTEGRATION MODELS FOR ACHIEVING STP 13
 PROGRESS ON STP 16

 

The Buy-Side Kicks In

17

 

Outsourcing

18

 

Industry Standards and External Connectivity: Core to Achieving STP

18

THE COST AND POTENTIAL BENEFITS OF STP 20
CONCLUSIONS 24
        

 

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