Straight Through Processing (STP): Prospects and Challenges

2004 ◽  
Vol 29 (1) ◽  
pp. 93-100
Author(s):  
Mohan Natarajan ◽  
Arshad Khan ◽  
Girish Nadkarni ◽  
G Sethu
Keyword(s):  
Financial Services ◽  
Information Exchange ◽  
Value Added ◽  
Transaction Processing ◽  
Securities Market ◽  
Successful Implementation ◽  
Security Market ◽  
Indian Government ◽  
Market Participants ◽  
Securities Industry

The financial services industry is in the midst of transformation. Straight Through Processing (STP) is one of the major initiatives currently under way in developed securities markets. STP strives to reduce the trade transaction settlement cycle. STP is expected to reduce transaction processing risk and cost and may offer opportunities for value-added products and services to customers. Indian government has announced its intention to reduce the settlement cycles from (T+3) to (T+2) and eventually to (T+1) over the next few years. The Securities and Exchange Board of India (SEBI) has been asking the Indian securities industry to implement STP which is characterized by significant real time virtual processing with concurrent information exchange. Implementation of STP has many strategic angles. The players would see STP as a project investment and would be motivated only if there are gains commensurate with risks. All players are unlikely to benefit evenly. Some players are further along the learning curve than others. There are multiple messaging standards and software making interoperability a difficult issue to resolve to everyone's satisfaction. Successful implementation of STP would result in a quantum jump in the way security market transactions are processed in India. But, it is a challenging task. This colloquium was arranged to discuss the main issues as seen by the market participants in the securities industry in India. The panel members addressed the following issues: What is STP? What kinds of benefits from STP have been realized in the global markets? What are the challenges of implementing STP in the Indian securities market? The salient features of the responses are as follows: At present, different entities in the security transaction processing work use different systems. There is no synchronization of data. In developed markets, much progress has been made in eliminating this roadblock. In India, we should address this issue quickly to realize the benefits of STP. STP implementation in each entity has two elements - streamlining external processes (external STP) as well as internal processes (internal STP). Benefits of STP arise from operational efficiencies, productivity gains, and also from improved customer satisfaction. The biggest challenge for STP is to ‘determine the best approach.’ This dilemma is further complicated due to the two elements of STP strategy: internal STP and external STP.

scholarly journals State regulation of the securities market of the Republic of Kazakhstan

2021 ◽  
Vol 101 (1) ◽  
pp. 152-161
Author(s):  
R.K. Yelshibayev ◽  
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Government Regulation ◽  
State Regulation ◽  
Securities Market ◽  
Regulation System ◽  
Market Participants ◽  
Functional Capabilities ◽  
Wide Range ◽  
The Republic

Object: The purpose is to identify promising directions for the development of the securities market of the Republic of Kazakhstan and reform the system of its government regulation. Methods: The study used methods of empirical, subject-object, system, deductive and comparative analysis. Each of these methods was used adequately to its functional capabilities and resolving abilities for solving the corresponding stage research tasks. Findings: As a result of the research by the author:  features of the securities market as an object of government regulation are studied;  infrastructure support of the system of government regulation of the securities market of the Republic of Kazakhstan was examined;  assessment of the current state of the securities market of the Republic;  system problems of government regulation and market development are investigated;  promising areas of reforming the securities market of the Republic of Kazakhstan and its government regulation system are developed and scientifically substantiated. Conclusions: A shift of focus from problems of legal support of the system of government regulation of the securities market of the Republic of Kazakhstan to the problem of primary transparency and reliability of the market in terms of economic integration and global coronacrisis will allow achieving the following targets:  share market capitalization to GDP will double if new IPOs are held by corporate issuers;  RFCA will join the group of ten leading financial centers in Asia;  access to financial services for a wide range of consumers will be provided;  increase of financial literacy of the population, protection of interests of potential investors and safety of savings of market participants will be ensured.

Antitrust and Financial Services in the EU: Commitments in Credit Default Swaps (CDS)

2016 ◽  
Vol 14 (4) ◽  
pp. 415-428
Author(s):  
René Plank
Keyword(s):  
Financial Services ◽  
Imperfect Competition ◽  
Value Added ◽  
Credit Default Swaps ◽  
Sustainable Growth ◽  
Antitrust Enforcement ◽  
Market Failures ◽  
Market Participants ◽  
Systemic Risks ◽  
Credit Default

AbstractFollowing the financial crisis, far-reaching regulation of financial services was introduced to achieve sustainable growth and systemic stability. Whereas regulation tackles broad structural market failures, competition policy addresses harmful behaviour of individual market participants. The systemic risks evidenced in the crisis therefore merit specific additional attention to market failures and imperfect competition in financial services, to address issues such as market power, asymmetric information and entry barriers. This article examines a recent example of antitrust enforcement in financial services, focusing on the rationale and adequacy of using antitrust commitments in this sector, addressing the application of this rationale to the recently adopted Commission Decisions in the Credit Default Swaps (CDS) case. It will place the CDS case in context of antitrust enforcement and regulation in financial services, in particular derivatives, and examine the value added of the CDS commitments and the necessity for antitrust enforcement going forward.

scholarly journals TRENDS IN THE DEVELOPMENT OF INNOVATIONS IN THE RUSSIAN SECURITIES MARKET

2021 ◽  
pp. 28-35
Author(s):  
E.A. Annenkova ◽  
Keyword(s):  
Financial Services ◽  
Securities Market ◽  
Competitive Advantages ◽  
Scientific Methods ◽  
Market Participants ◽  
General Scientific ◽  
Definition Of ◽  
Private Investors ◽  
High Degree ◽  
Regressive Analysis

The relevance of the problem under study was due to the emergence of new financial technolo¬gies and the creation of prerequisites for their active introduction into the securities market. The activity of the securities market would in many ways expand the opportunities of both the population, represented by private investors and enterprises, which in turn made it possible to solve many problems. Digitalization today has af¬fected all areas of activity, including the securities market. It had an impact on both financial institutions and financial partners. In order to reduce the time spent performing operations, gain competitive advantages over competitors, and attract more customers, securities market entities sought to make as much use of the latest developments as possible in various aspects of performance. Digital transformations in the securities market inevitably entail a rethinking of the views of users and participants in these fi-nas relations. The purpose of the article is to highlight trends in the development of innovations in the securities market and identify the degree of their influence on market participants. In the course of the study, general scientific methods of cognition, such as analysis, synthesis, induction and generalization, were applied. The definition of innovations in the securities market was given, the necessity of their use in the activities of the subjects of the securities market was proved, the main trends were characterized and a regressive analysis was carried out, which proved a high degree of influence of the welfare of citizens and the number of subjects from innovations. In the article, based on the accumulation of the introduction of innovations into the activities of participants in the Russian securi¬ties market, ways of improving them are proposed. It also considered and argued the possibility of creating a financial supermarket based on the Moscow Exchange in the form of a marketplace, which in the future will be able to offer all types of financial services. The results obtained in the course of the study could be used in the formation of a competitive strategy for participants in the securities market in the process of implementing their innovative activities.

scholarly journals SECURITIES MARKET IN LATVIA – DEVELOPMENT OPPORTUNITIES AND PROBLEMS

2012 ◽  
Vol 1 (4) ◽  
pp. 358
Author(s):  
Vineta Šņepste
Keyword(s):  
Economic Development ◽  
Securities Market ◽  
Market Development ◽  
Security Market ◽  
Market Participants ◽  
Market Situation

Securities market development is an indicator of economic development in general. An active securities market almost always means a vibrant economics. Latvian security market for many years has developed in a qualitative more than quantitative way, giving market participants a variety of convenient technology solutions, without any significant changes in the offer of securities on the market. This situation is not conducive to interest potential investors in the domestic securities market, stating that it lacks a qualitative offer as well as liquidity. In her work, the author gathers information on the current market situation, identifies the most important problems and defines the main directions of development.

The SEC’s Municipal Advisor Rule will prompt new practices for market participants

2014 ◽  
Vol 15 (2) ◽  
pp. 10-17
Author(s):  
David Bannard ◽  
Reed Groethe
Keyword(s):  
Financial Services ◽  
Design Methodology ◽  
Securities Market ◽  
Information Flows ◽  
Content Type ◽  
Market Participants ◽  
Financial Products ◽  
Practical Guidance ◽  
Flow Of Information ◽  
Practical Implications

Purpose – To explain the new Municipal Advisor Rule that will take effect on July 1, 2014, which regulates persons and firms that provide advice to municipal issuers and obligated parties regarding municipal financial products or the issuance of municipal securities or that engage in certain solicitation of municipalities or obligors on behalf of third parties. Design/methodology/approach – Explains who is treated as a Municipal Advisor, the standards applicable to Municipal Advisors, how the Rule may affect municipal securities issuers and obligated persons (collectively referred to as “Borrowers”) as well as other market participants, describes the exceptions and exemption s to the requirements of the Rule, and concludes with suggestions as to how Borrowers and other market participants may promote the flow of information. Findings – The Rule will carry out a requirement of the Dodd-Frank Act, which provides that any party that provides advice to a Borrower regarding municipal financial products or the issuance of municipal securities must register with the SEC and the MSRB as a Municipal Advisor, unless such party qualifies for an exception or exemption under the Rule. Practical Implications: The Rule will change how information flows in the municipal securities market. Some consequences of the Rule may disadvantage Borrowers and other market participants. The Rule may restrict the flow of information provided to Borrowers by participants in the municipal securities marketplace that are not Municipal Advisors. Originality/value – Practical guidance from experienced financial services lawyers.

scholarly journals On Issue of a Management Company as a Participant in the Securities Market

2020 ◽  
Vol 11 (1) ◽  
Author(s):  
Anna Timofeyeva
Keyword(s):  
Financial Market ◽  
Institutional Investor ◽  
Securities Market ◽  
Security Market ◽  
Economic Literature ◽  
Management Company ◽  
Foreign Experience ◽  
Market Participants

The need for inflow of additional investment resources into Russias economy in order to finance infrastructural and social projects demand improving the existing mechanisms of accumulation and investment of free monetary funds of the population and economic entities. The foreign experience testifies that to achieve this goal it makes sense to develop the corresponding institutions of the financial market. An important role in mobilizing longterm resources is called upon to be played by the funds controlled by the intermediaries of the security market - the management companies. In view of this, the topical items for the study are the issues of management companies functioning and identification of their place in the structure of the security market. An analysis of the Russian legislation and economic literature testifies that the issue of inclusion of the management company into this or that group the security market participants needs an upgrade. The article shows that the management company is an institutional investor of the security market, which functions on the qualified basis and is classified as a group of collective investors.

Analisis Kinerja Keuangan Perusahaan dengan Menggunakan Pendekatan Economic Value Added (EVA) dan Market Value Added (MVA) (Studi Kasus pada PT Astra International, Tbk. Periode Tahun 20082012)

2017 ◽  
Vol 1 (1) ◽  
Author(s):  
Abdul Hamid
Keyword(s):  
Financial Performance ◽  
Financial Services ◽  
Stock Price ◽  
Economic Value ◽  
Composite Index ◽  
Value Added ◽  
Secondary Data ◽  
Study Approach ◽  
Market Value Added ◽  
The Interest Rate

This study is a qualitative study using a case study approach to the PT. Astra International, Tbk. The object of this research is PT. Astra International, Tbk. PT. Astra International, Tbk is a company engaged in six business sectors, namely: automotive,financial services, heavy equipment, mining and energy, agribusiness, information technology, infrastructure and logistics. Researchers chose PT. Astra International, Tbk as research objects due in the year 2012, PT. Astra International, Tbk managed to rank first in the list of 100 Best Companies to Go Public by the 2011 financial performance of Fortune magazines Indonesia. The data used in this research is secondary data, the financial statements. Astra International, Tbk 20082012. Other secondary data used is the interest rate of Bank Indonesia Certificates (SBI), the Jakarta Composite Index (JCI), and thecompanys stock price began the year 20082012. This study aims to determine the companys financial performance by the use of EVA and MVA approach, therefore the data analysis technique used is the EVA and MVA. Based on the value EVA of the year 2008 2012, PT. Astra International, Tbk has good financial performance that managed to meet the expectations of the company and the investors. Based on the value of MVA during the years 20082012, PT. Astra International, Tbk managed to create wealth and prosperity for companies and investors. It concluded that financial performance. AstraInternational, Tbk for five years was satisfactory.

scholarly journals Financial technology and the future of banking

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Daniel Broby
Keyword(s):  
Financial Services ◽  
Empirical Investigation ◽  
Analytical Framework ◽  
Shadow Banking ◽  
Customer Acquisition ◽  
Market Participants ◽  
Digital World ◽  
The Future ◽  
Technology Applications ◽  
Financial Technology

AbstractThis paper presents an analytical framework that describes the business model of banks. It draws on the classical theory of banking and the literature on digital transformation. It provides an explanation for existing trends and, by extending the theory of the banking firm, it illustrates how financial intermediation will be impacted by innovative financial technology applications. It further reviews the options that established banks will have to consider in order to mitigate the threat to their profitability. Deposit taking and lending are considered in the context of the challenge made from shadow banking and the all-digital banks. The paper contributes to an understanding of the future of banking, providing a framework for scholarly empirical investigation. In the discussion, four possible strategies are proposed for market participants, (1) customer retention, (2) customer acquisition, (3) banking as a service and (4) social media payment platforms. It is concluded that, in an increasingly digital world, trust will remain at the core of banking. That said, liquidity transformation will still have an important role to play. The nature of banking and financial services, however, will change dramatically.

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