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Buy side holds key to ETC harmonisation across industry

Buy side holds key to ETC harmonisation across industry

19 March 2013

London, 19 March 2013 - The lack of an industry standard solution for electronic trade confirmation (ETC) is driving up industry costs, as buy sides deliberate about which technology platform best suits their business. This is among the key findings of the latest in a series of reports from analyst firm Aite into the challenges of and solutions for trade verification in the market today.

The report examines a number of ETC solutions. Among the identified benefits of SWIFT's Global Electronic Trade Confirmation (GETC) solution are affordability and resilience. The report also shows local matching is an option favoured by many buy sides. SWIFT's GETC solution supports local matching.

SWIFT, the financial messaging provider for more than 10,000 financial institutions and corporations in 212 countries and territories, provides a suite of post-trade services which are driving costs down and efficiencies up for an increasing number of buy and sell side players.

"Buy side clients are keen to see their brokers taking steps to invest in more automated processes and connectivity to electronic trade confirmation platforms and technologies in order to provide a higher level of service and reliability," says the Aite report author, Virginie O'Shea.

Until a standard solution emerges, however, brokers have to contend with the prospect of connecting to multiple platforms - with the associated costs. In what is already an extremely tough economic environment, 73% of the brokers participating in the Aite research report a reduction in trade support headcount. This places more and more emphasis on brokers to utilise technology to automate trade processing. But while the buy side deliberates, brokers aren't sure which way to go with their technology decisions.  Investment is required but budgets remain tight.

The report finds that the SWIFT GETC solution has been successfully rolled out by a Tier 1 broker for US$300,000, and by a Tier 2 broker for US$150,000.

Paul Taylor, Director, Global Matching, SWIFT, comments: "The Aite report highlights some very real challenges for the broker and asset management communities in these difficult economic times. The buy side holds the key to enabling industry harmonisation and ultimately efficient and cost-effective trade processing. We have seen our GETC solution winning favour in the market as a viable option and we are very pleased to continue to bring innovation and cost savings to our extensive global user community."

The SWIFT GETC team will be participating in TSAM Europe in London on 19 March and welcomes delegates to view SWIFT's suite of post-trade services during the event. To meet with our experts and find out more about GETC, please join us on Stand 19 in the exhibition area.

 "The Broker View of Trade Verification: Waiting for the Buy-Side to Shoot" is available from Aite Group at 

SWIFT is a member-owned cooperative that provides the communications platform, products and services to connect more than 10,000 financial institutions and corporations in 212 countries and territories. SWIFT enables its users to exchange automated, standardised financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. SWIFT also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest.

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