We continue to live with the legacy of the 2008 crash. This means relentless downward pressure on costs and diminishing return on equity. In securities and treasury post-trade, this cost challenge is particularly acute. Headcounts are reducing. And despite improved technology and a long-term focus on process improvement, costs are still too high.
In fact, estimates suggest that as much as 65% of the all-in-cost of an equity transaction is incurred through post-trade processing. Did you know that SWIFT customers save up to 75% on their post-trade processing costs? No other provider in the market today can match that saving.
Compounding the challenge of taking costs out of post-trade is the requirement to spend more to comply with new regulation. A chain is only as strong as its weakest link, and where processes are not fully integrated, it is tough to be confident about timely execution and reporting of trades. This puts the watertight operational resilience demanded by regulators today at risk.
In the current climate business growth is hard enough to achieve without post-trade inefficiencies getting in the way. New products need to be taken to market quickly and where manual effort is required to make good the disconnects between systems that are not seamlessly integrated speed to market is difficult.
All these factors point in one direction - the need for better post-trade automation, to eliminate manual intervention, migrate away from point systems, shrink costs and improve operational robustness for better regulatory compliance.
You need to invest in post-trade to ensure the future success of your business. The question is, how do you choose the right technology provider?
The complex post-trade environment needs secure, reliable, efficient and cost-effective process automation. Investing in a highly respected provider, with industry expertise, a track record of success and an ongoing commitment to developing new solutions to meet its customers' needs is essential.
When considering your options, it makes sense to look at SWIFT - an organisation that truly understands your business, is fully engaged at all levels with the financial community, and offers a suite of multi-asset class post-trade solutions which extend the benefits of automation to all transactions, clients and counterparties.
Paul Taylor, one of post-trade experts based in London, blogs on a wide range of post-trade topics. Read Paul’s blog on Finextra here.