SunGard Achieving STP Today
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Special Advertorial Supplement of Wall Street & Technology 1 www.wallstreetandtech/stpchallenge.com Achieving STP Today S traight through processing is a strategic imperative today and is required by all financial institutions in order to achieve operating effi- ciencies, and reduce costs and operational risk. STP can be achieved today within an institution by integrating its heterogeneous systems environment in the front and back office. STP can also be achieved today between institutions by seamlessly connect- ing the systems on the buy-side with sys- tems on the sell-side and with settlement agents. With a single SunGard relationship, clients can fully automate the entire transaction life- cycle for different asset classes, cross border, with all of their existing business partners, and also integrate seamlessly with their exist- ing applications. More than 1,500 firms par- ticipate in <STN > today. The SunGard Transaction Network <STN> connects different parties in the financial mar- ketplace to achieve straight-through process- ing. <STN> consists of a growing number of hubs, each focusing on a specific market seg- ment, connecting SunGard with SunGard and third party solutions. The SunGard Transac- tion Network helps clients achieve opera- tional efficiency and operational resilience. Improving operational efficiency in today’s markets requires a focus on STP. SunGard helps clients realize STP through internal and external integration. We link our best-of- breed solutions in the buy-side and sell-side. Combined with seamless connectivity to part- ners and counterparties, SunGard offers a comprehensive, end-to-end STP solution to virtually any market participant. The most costly part of a trade is the cost of intermediating the trade. The Plexus Group estimates that an average of 100-200 basis points may be lost through inefficien- cies in the trading process. “A significant number of today’s trades involve manual processes for at least some phase of the transaction,” explains Mark Volker, senior vice president for business development at SunGard Financial Networks. “Even though a decision on T+1 was postponed until 2004, firms can gain immediate benefits with STP solutions that are available today, and that can improve throughput, capacity, and accu- racy.” Key components of <STN> include: <STN> EQUITIES connects equity investors with brokers, market makers, ECNs, and other liquidity pools. It links systems in asset managers and trust companies with order management systems on the sell-side. By beginning trade automation at trade incep- tion, it also positions the originating manager for use of <STN> Post Trade Services, to com- plete the post-execution trade process. <STN> FUNDS connects investors with mutual fund families—linking systems in employee benefit administrators, asset man- agers and trust companies with systems of mutual fund families and transfer-agents. <STN> FIXED INCOME is a real-time, secure and efficient trading platform that supports the collection, management, display and execution of fixed income security offerings. <STN> MONEY MARKETS offers easy-to-use Internet trading for a range of money market products including commercial paper. By linking buyers with primary dealers and issuers, efficiency is brought to this other- wise manual environment. <STN> POST TRADE SERVICES streamlines post-execution trade operations with asset managers, broker/dealers, custodians and clearing agencies. <STN> Post Trade
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Transcript of SunGard Achieving STP Today
Special Advertorial Supplement of Wall Street & Technology
1 www.wallstreetandtech/stpchallenge.com
Achieving STP Today
Straight through processing is astrategic imperative today and isre q u i red by all financial institutionsin order to achieve operating eff i-
ciencies, and reduce costs and operationalrisk. STP can be achieved today w i t h i n a ninstitution by integrating its hetero g e n e o u ssystems environment in the front and backo ffice. STP can also be achieved todayb e t w e e n institutions by seamlessly connect-ing the systems on the buy-side with sys-tems on the sell-side and with settlementa g e n t s .
With a single SunGard relationship, clientscan fully automate the entire transaction life-cycle for diff e rent asset classes, cross bord e r,with all of their existing business partners,and also integrate seamlessly with their exist-ing applications. More than 1,500 firms par-ticipate in <STN > today.
The SunGard Transaction Network <STN>connects diff e rent parties in the financial mar-ketplace to achieve straight-through pro c e s s-ing. <STN> consists of a growing number ofhubs, each focusing on a specific market seg-ment, connecting SunGard with SunGard andt h i rd party solutions. The SunGard Tr a n s a c-tion Network helps clients achieve opera-tional efficiency and operational re s i l i e n c e .I m p roving operational efficiency in today’smarkets re q u i res a focus on STP. SunGardhelps clients realize STP through internal andexternal integration. We link our best-of-b reed solutions in the buy-side and sell-side.Combined with seamless connectivity to part-ners and counterparties, SunGard offers ac o m p rehensive, end-to-end STP solution tovirtually any market participant.
The most costly part of a trade is the costof intermediating the trade. The PlexusG roup estimates that an average of 100-200basis points may be lost through ineff i c i e n-cies in the trading process. “A significant
number of today’s trades involve manualp rocesses for at least some phase of thetransaction,” explains Mark Vo l k e r, seniorvice president for business development atS u n G a rd Financial Networks. “Even though adecision on T+1 was postponed until 2004,firms can gain immediate benefits with STPsolutions that are available today, and thatcan improve throughput, capacity, and accu-r a c y. ”
Key components of <STN> include:
<STN> EQUITIES connects equity investorswith brokers, market makers, ECNs, andother liquidity pools. It links systems in assetmanagers and trust companies with ord e rmanagement systems on the sell-side. Bybeginning trade automation at trade incep-tion, it also positions the originating managerfor use of <STN> Post Trade Services, to com-plete the post-execution trade process.
<STN> FUNDS connects investors with mutual fund families—linking systems inemployee benefit administrators, asset man-agers and trust companies with systems ofmutual fund families and transfer- a g e n t s .
<STN> FIXED INCOME is a real-time, secureand efficient trading platform that supportsthe collection, management, display andexecution of fixed income security offerings.
<STN> MONEY MARKETS o ffers easy-to-useInternet trading for a range of money marketp roducts including commercial paper. Bylinking buyers with primary dealers andissuers, efficiency is brought to this other-wise manual enviro n m e n t .
<STN> POST TRADE SERVICES s t re a m l i n e spost-execution trade operations with assetmanagers, broker/dealers, custodians andclearing agencies. <STN> Post Tr a d e
Special Advertorial Supplement of Wall Street & Technology
2www.wallstreetandtech/stpchallenge.com
Services automates the trade matching anda ffirmation process, offers seamless path-ways for trade allocations and provides fullintegration of bank letters and bank notifica-tions. Further, early adoption of these tech-nologies positions market participantss q u a rely in the fore f ront of trade automation,p reparing them now for the move to virtualmatching utilities and shorter settlementcycles.
CASE STUDIES
N a v e l l i e r, a quantitative/fundamental analy-sis and fund firm based in Reno, NV, uses<STN> Post Trade Services to automate theconfirmation and trade affirmation pro c e s s-es, as well as trade allocations for its spon-s o red WRAP program management.Navellier was able to reduce its 19-hourtrade matching and affirmation process, toonly 2 hours with <STN> Post Trade Services.Employees no longer work late hours and areable to process information automatically viaadvanced scripting. SunGard was also ableto significantly reduce Navellier’s trade-con-firm download time from a nearly day-longp rocess to only 2.5 minutes. In addition,<STN> automated Navellier’s WRAP pro-g r a m ’s trade allocation process, which pre v i-ously included 20-30 page faxes of detailedallocation data. Navellier and SunGardworked cooperatively to automate thep rocess of communicating block-trade allo-cation instructions that spanned hundreds ofindividual accounts.
Wasatch Advisors specializes in managingassets for institutional and individual clients
t h rough investments in small and mid-sizecompanies. After implementing <STN>Equities for order routing from its FIX-enabled order management system, Wa s a t c hwas able to quadruple trading volume withno increase in trading staff. Enabling auto-mated trade-order routing allowed its tradersto devote more time and energy to genera-tion and execution of actual trades.
CMC Interactive, LLC, a Manhattan-based401(k) service plan provider targeting thesmall to mid-size markets, was able to cutout the middleman, automate the 401(k)fund-trading process, reduce costs and signon new clients with <STN> technology.“ S u n G a rd ’s systems allow our plan sponsorsto get information, download reports andrun live reports. It saves us time, money andultimately gives cost savings to our cus-tomers,” explains Michael Calandra,Principal, CMC Interactive, LLC.
The seamless link between SunGard ’sRelius™ Administration (re c o rdkeeping soft-w a re) and <STN> enables CMC Interactive toautomate trading on an omnibus level. Plansponsors and participants have direct accessto their accounts maintained on Reliust h rough the Web and Voice Response Unit(VRU).
“ We put all our eggs in the SunGard basket.S u n G a rd listens to our needs in order to takethe product to a higher standard,” explainsM r. Calandra.
“ S u n G a rd's strategy is to be the most eff i-cient processor of transaction flows betweenthe buy-side and sell-side with the fastestand most cost-effective technology infra-s t r u c t u re,” explains Mr. Vo l k e r. “The SunGardTransaction Network recently signed up its500th client for equities trading and is nowalso the third largest mutual fund tradingnetwork in North America. That is STP. Thatis SunGard today. ”
w w w. s u n g a rd . c o m
SunGard55 BroadwayNew York, NY 10006Phone: (212)809.3078Karen GenicolaE-mail:[email protected]: www.sungard.com
