Research from Deloitte & Touche shows that financial institutions remain firmly committed to achieving STP, despite the postponement of the T+1 settlement deadline.
The professional services firm surveyed 90 senior executives at investment management firms, broker/dealers and custodian banks on the status of their firms’ STP initiatives and their future priorities. Most firms expect to continue to allocate funds to STP and to substantially achieve automated trade processing over the next few years.
Despite the postponement by the Securities Industry Association of an earlier T+1 deadline for 2005, 74% of executives say the commitment of their firm to STP has either stayed the same or increased.
But when asked whether T+1 should be mandated, 53% of executives opposed a mandate, while 47% supported mandating T+1. Fifty-six percent of executives believe shortening the settlement window to T+1 will increase overall risk.
Deloitte & Touche says the next phase of STP implementation for all organisations will be to integrate all of a firm’s functions and activities, from customer service to financial reporting, to better realise the benefits associated with the STP vision.
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