Financial services companies’ drive to introduce straight through processing (STP) is being complicated by the number of messaging standards being used by the industry, delegates at the Finexpo conference in London heard.
STP - the automation of the trade and clearing process for financial transactions - is one of the biggest challenges facing global financial markets. Firms are under pressure to increase cut the cost of transactions by automating the trading process, which should also reduce error rates.
Lee Adams, principle consultant, financial software supplier SmartStream Technologies, said banks systems had to handle financial messages in ISO1522, XML and FIX -- Financial Information Exchange format.
"When these barriers combine with the pressures of having to respond to increasing regulation and compliance issues there is every opportunity for stagnation," said Adams.
Investment in STP was crucial to increase efficiency, reduce risk and share information with clients
"[Firms] need a rock solid electronic audit trail and be able to track and monitor any errors," he said.