Andersen Consulting (www.ac.com) is teaming with STC, Bloomberg and others to create an Internet-based platform for straight-through processing (STP) in the global securities industry.
The solution, to be called Andersen Consulting Web eSTP, is billed as an Internet portal that will provide financial markets industry participants with a single point of entry for pre-trade, trade and post-trade activities. The purpose of Web eSTP is to reduce the costs and risks currently associated with securities trading, says the consultancy.
Andersen Consulting has chosen STC to provide the integration layer for Web eSTP. The consultancy is currently in discussions with other service providers and industry participants regarding their potential involvement in the solution. Bloomberg has already agreed to provide access to its market information, analysis, news and trade/order management capabilities as a complement to Web eSTP.
"Asset managers in the United States, who manage $15 trillion, spend between $30 billion and $45 billion annually in what are largely non-value-added tasks," says Jim Honohan, a partner in Andersen Consulting's Financial Services practice who directs the firm's STP activities. "We expect that Andersen Consulting Web eSTP will reduce the time, money and risk associated with transitioning to a T+1/STP environment for hundreds of asset managers on a global basis."
The Web eSTP solution will aim to integrate best-of-breed applications in a toolset that can dynamically link customer relationship management (CRM) capabilities with real-time portfolio management information. Specifically, the portal will facilitate real-time messaging and information flow between the client and various providers of services to accomplish tasks such as trade management, investment accounting, enterprise management and benefits outsourcing. It also will enable portfolio managers and their assistants, as well as their firms' sales and customer service representatives, to use a simple Web browser to check markets and execute orders with their counterparties. In addition, cliams the consultancy, portfolio managers' clients will be able to access their own up-to-date account information over the Internet via the site.
Web eSTP was conceived and is being developed at the Andersen Consulting STP Centre of Excellence, located in New York City.