A tough nut to crack: How can we further streamline Post Trade FX? >>>
White says: “This business should not be that
complicated. It’s an absolute commodity. At the
extremes there are some complicated products, but
fundamentally the core kind of $3bn-$4bn a day
flow is really simple. It’s not a technology issue, just
negative process issues that need unwinding.”
“We also see increased demand for rapid ticket
creation,” notes Kriskinans. “This is whether it be
super-flexible manual entry forms, or automated ticket
creation from unstructured text based sources like
Reuters Dealing 3000 conversations, where one might
have an option and spot hedge trade in the same
screen.” He adds: “Banks need to service their clients,
and often down to individual hedge fund manager’s
requirements like creating a trade out of an email
confirmation or an attachment to that email. And,
publishing to them in a format that their internal
Tony Whitesystems can recognize, but also as an email that can be
“This business should not be that complicated.received anywhere.”
It’s an absolute commodity.”
According to Kiel the challenges of these bottlenecks
can be “easily managed” by the market adopting alerting system, as well as giving them an ability to fi x
a standards-based approach to enable simple a failed trade quickly.”
interoperability across venues in the pre-trade, trade
and post-trade landscape. In general he says everyone is working “very hard to
kill off these breaks” in the process, and in most cases
“However, whilst this is not immediately realistic,” very high percentages of trades are passing through
he says. “Minimising the number of connections by most banks systems - without the need for further
linking to connectivity gateways such asThomson manual intervention. For the inter-bank business the
STP rates are very high, probably now 97%-98% andReutersTrade Notification greatly simplifies the
maybe higher for some institutions.The corporateconnectivity and integration requirements of
sales area is where some issues remain.connecting directly to a growing number of end-
points.”
“Where the initial collection of the message is done
efficiently and with all the necessary fields that areDealing with exceptions
required downstream identified, there should be fewEven with the most efficient static data setup and
reasons for a trade to fail,” Kriskinans points out.maintenance, there are still have situations where
trades occasionally fail for the simplest of reasons. Dyne at Logicscope says that what will happen going
But the industry is tackling the issues associated with forward is that exceptions as a proportion of overall
exceptions processing and breaks in fl ows, which tickets will reduce since “the opportunity for errors to
hamper end-to-end STP.The more electronic the occur is reduced profoundly as human intervention
initial trading is, the less exceptions there should be. (people) is increasingly taken out of the equation.” Of
around 600 separate connections globally, more than
Kriskinans notes: “When we implemented the half of Logicscope’s TradeSTP installations are paid for
DealHub Routing and Processing Engine at one global by a ‘sponsoring’ trading venue. And the reason why
bank, we not only had to set up the complex business Tier-1 banks pay vendors like Logicscope to connect
logic to split and route trades and create back-to-back their clients to them for post-trade STP? Because of
trades to be forwarded to multiple back office systems, the benefits they reap in terms of improved client
but also to create an ‘Exception Review Queue’ ‘stickiness’, in turn leading to higher trading volumes
process that was integrated to the bank’s own internal and greater profitability.
|april 2010 e -FOREX 59
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156  |  Page 157  |  Page 158  |  Page 159  |  Page 160  |  Page 161  |  Page 162  |  Page 163  |  Page 164  |  Page 165  |  Page 166  |  Page 167  |  Page 168  |  Page 169  |  Page 170  |  Page 171  |  Page 172