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| Thought Paper |
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Enhancing STP implementation using Web Services and BPM |
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| Abstract |
The US government had passed a resolution that, by the year 2004, all financial firms
must achieve T+1 capability which means the ability to settle a trade one day after the
transaction. Accelerating the settlement cycle to T+1 means that all clearance and
settlement processes occur faster, beginning with the capture of executed trades from the
marketplace. This is possible through a Straight Through Processing (STP) framework,
which permits the electronic capture and processing of transactions from the point-of-order
to the actual settlement in a shorter span of time with greater accuracy.
Although this goal has not been achieved completely, the need for STP is increasing with
the increase in the volume and complexity of transactions.
This paper suggests the approach organizations should follow for implementing STP and highlights emerging technology options such as BPM and Web Services in STP implementation.
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