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T+1 and GSTP
Over the past several years, the U.S. Securities
industry has tackled significant challenges and embraced innovations
in technology that have kept our markets the envy of the world.
The next challenge facing the industry is to shorten the trade settlement
cycle from three days (T+3) to one day (T+1).
The Securities and Exchange Commission has mandated that the securities
industry achieve T+1 compliance no later than Q2 2004. The SEC has
also announced that after T+1, the next challenge for the industry
will be to achieve Global Straight Through Processing (GSTP). The
U.S. Securities industry will lead the world in building systems
that enable the order-through-settlement process to occur on a real-time
(T+0) basis.
According to guidelines published by the Securities Industry Association,
T+1 systems must be completed and ready for testing by Q2 2003.
The SIA recommends actual development begins no later than Q2 2002.
To realize these goals, companies should already be in the process
of developing project plans, obtaining funding approval, and retaining
vendors capable of supporting order-through-settlement GSTP on a
real-time basis.
Wellington Consulting has been building financial systems for Broker
Dealers, Banks, and Investment Firms for over 11 years. Our consultants
average 13 years experience developing financial systems. Wellington
anticipated this GSTP trend over three years ago and has been helping
an increasing number of firms build systems such as:
- Browser-based order capture systems
with real-time order validation.
- Real-time account position validation
& inventory management systems.
- Electronic Order Routing - order capture
to trading desks to sponsors to clearing.
- Real-time reporting systems that show
trade breaks and facilitate cancel & corrects.
- Order-through-settlement process analysis
- gap identification and needs assessment.
- Real-time global account consolidation
for position validation and evaluation.
- Real-time, web-based, risk management
and compliance reporting system.
- Real-time, web-based, trader portfolio
P&L system with customizable rollups.
- Development or enhancement of messaging
systems, bridges, and interfaces for: ADP, Pershing, Beta, Bear
Sterns, Townsend, Island, Archipelago, IDSI, Bloomberg, JJ Kenny,
Mint, MQ Series, Bloomberg, Swift, Trade View, Portia, FX Spot,
Vestek, Advent and Oasys.
- Architecture, implemntation and QA
of Disaster Recovery Plans.
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