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Straight-Through Processing (STP) is an automated process that streamlines the data movement between information systems, eliminating any manual intervention. It is designed to automate the entire life cycle of data processing process, from business processes to operations and activities, resulting in faster and more efficient execution of end-user tasks and activities. STP can be used in a wide range of applications.
In the payments and securities industry, STP aids in the efficient and accurate transition of financial transactions. By streamlining the process, it eliminates delays and redundancies, reduces costs, and improves data accuracy. This is especially beneficial as financial markets become increasingly global and transactions become larger and more complex. By automating the data movement and processing, STP helps ensure the accuracy and completeness of the information that is being handled, as well as its timeliness.
STP works by providing one single web-based platform that provides the necessary connectivity and automation tools between the upstream and downstream players in the payments and securities industry, including banks, asset managers, broker-dealers, exchanges, custodians, and other parties. This helps to eliminate manual entry of data and allows for fully automated, straight-through processing.
Furthermore, STP is increasingly seen as a key tool in commercial and operational risk management, as it helps to reduce errors and operational costs. Since STP provides automation and uniformity, it reduces requirements for specialized manual interventions and simplifies the complexities of data and operations. Additionally, reliance on manual processes can significantly increase the overhead costs associated with operations and processes, while STP reduces the risk of human errors.
STP is a powerful tool that has further been enabled by the development of the internet, providing a universal computational platform to support the connected exchange of data between financial participants. As the online trading and banking industry continues to expand, STP becomes even more critical for achieving successful, timely, and accurate processing of financial transactions.
In the payments and securities industry, STP aids in the efficient and accurate transition of financial transactions. By streamlining the process, it eliminates delays and redundancies, reduces costs, and improves data accuracy. This is especially beneficial as financial markets become increasingly global and transactions become larger and more complex. By automating the data movement and processing, STP helps ensure the accuracy and completeness of the information that is being handled, as well as its timeliness.
STP works by providing one single web-based platform that provides the necessary connectivity and automation tools between the upstream and downstream players in the payments and securities industry, including banks, asset managers, broker-dealers, exchanges, custodians, and other parties. This helps to eliminate manual entry of data and allows for fully automated, straight-through processing.
Furthermore, STP is increasingly seen as a key tool in commercial and operational risk management, as it helps to reduce errors and operational costs. Since STP provides automation and uniformity, it reduces requirements for specialized manual interventions and simplifies the complexities of data and operations. Additionally, reliance on manual processes can significantly increase the overhead costs associated with operations and processes, while STP reduces the risk of human errors.
STP is a powerful tool that has further been enabled by the development of the internet, providing a universal computational platform to support the connected exchange of data between financial participants. As the online trading and banking industry continues to expand, STP becomes even more critical for achieving successful, timely, and accurate processing of financial transactions.