Boston-based Pioneer Investment Management has used Mercator integration solutions to boost straight-through processing rates to 85% and prepare for the SEC-mandated T+1 settlement deadline in 2004.
The Securities and Exchange Commission T+1 mandate, scheduled for the second quarter of 2004, requires industry firms to process securities trades in one day, as opposed to current regulations that allow three day settlement periods.
In preparation for meeting this milestone, Mercator was commissioned by Pioneer to develop interfaces between its front office order management, compliance systems, back office accounting systems and settlement instruction database, and to provide a hub for repairing, enriching and routing trade information. Mercator also implemented Pioneer's connection to the Swift inter-bank messaging network for direct communications with custodians.
The combined effort has pushed STP rates at Pioneer to the 85% mark says Daniel Consigli, director of investment operations systems at Pioneer. "Now, we have a process in place that provides complete, accurate, reliable and timely data transfer," he adds.