London – 9 November 2022 – Torstone Technology, a leading SaaS platform for post-trade securities and derivatives processing and Firebrand Research, a provider of research and advisory services have today published a white paper highlighting the business case for firms to address inefficiencies across the middle- and back-office and increase automation ahead of the global push towards shortening settlement cycles including T+1 and T+0.
The report titled ‘The Move to T+1: A business case for automating the middle office’, emphasises the regulatory pressure to move to T+1 in North America in just under two years, and the scope of the practical challenges for firms as the industry moves to T+1.
The research estimates that 81% of brokers and banks active within the US and Canadian markets are either using manual processes or home-grown systems to support their post-trade processes. Beyond post-trade securities operations, the move to T+1 will also require changes across firms’ wider operational flow including:
- Front office systems
- ETFs and mutual fund processing
- Corporate actions
- Reference data
- Trade confirmation systems
The report goes on to outline a number of key operational benefits that can result from strategic investment in post-trade processes. These include:
- Increased confirmation matching rates, faster exception resolution and reduction in settlement failures which ensure greater operational efficiency
- The ability to deal with higher volumes of electronic order flow and market volatility
- Providing greater operational resilience
- Focusing operations staff on more value additive, client-facing tasks
- Coping with market changes without increasing the number of operations staff
- Modernising in line with the era of cloud
Commenting on the report, Brian Collings, CEO, Torstone Technology, said, “As the move to T+1 gathers momentum, firms will find that failing to adapt to industry-driven market structure changes will incur significant risk both operationally and competitively in a challenging market. Manual processes and batch processing are simply not compatible with the shift to shorter settlement cycles – firms need to update and automate their middle- and back-office systems or face substantial operational risk.”
Virginie O’Shea, CEO & Founder of Firebrand Research, added: “While firms absolutely need to prepare for the move to T+1, greater automation and digitisation has been topping client agendas since the pandemic and the subsequent pressure on resources. While T+1 is a clear impetus for firms to address inefficiencies, the benefit further automation will bring to competitiveness and client service cannot be overstated.”
About Firebrand Research www.fintechfirebrand.com
Firebrand Research is a leading expert in providing research and advisory services to firms across the capital markets spectrum. From fintech investments to business case building, they have the skills to help businesses get the job done.
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- Built on decades of research
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About Torstone Technology www.torstonetechnology.com
Torstone Technology is a leading global SaaS platform for post-trade securities and derivatives processing and risk management. We simplify the complexities of operational and risk workflows by connecting global financial industry expertise with technology innovation to provide comprehensive functionality, business process automation, and world-class client service to financial institutions across the globe.
Combining many decades of investment banking expertise with in-depth global financial market and technology industry knowledge, we offer agile, secure, scalable, and cost-effective solutions. Torstone’s Cloud-based, award-winning technology enables global financial firms to reduce costs, achieve greater operational efficiency, drive revenue growth, and minimize risk.
We are a fast-growing company headquartered in London, with offices in New York, Toronto, Hong Kong, Singapore, and Tokyo.