{"id":68,"date":"2021-11-24T02:45:42","date_gmt":"2021-11-24T02:45:42","guid":{"rendered":"https:\/\/blog.sensiple.com\/?p=68"},"modified":"2024-08-13T13:30:08","modified_gmt":"2024-08-13T13:30:08","slug":"the-future-of-post-trade-processes","status":"publish","type":"post","link":"https:\/\/blog.sensiple.com\/the-future-of-post-trade-processes\/","title":{"rendered":"The Future of Post-Trade Processes"},"content":{"rendered":"

Post-trade processes have started to occupy the center stage as the solutions designed by various market entities are becoming prominent.<\/em><\/p>\n

The innovations made in the technological sector have transformed and accelerated the services delivered by financial markets. Technology has empowered market participants to discover and implement tools that aid in the streamlined functioning of financial affairs. The post-covid scenario reaffirmed the importance of capital market technologies and the need to expand capabilities to sustain even during volatile periods.<\/p>\n

When it comes to trading, the front-office processes are far more well-equipped than the post-trade processes. FIX protocols and fintech products have facilitated a faster proceeding of capital market affairs, while post-trade operations are notably underrepresented. In 2019, a panelist from the FIX Trading Community’s Americas Trading Briefing session famously noted that the back office is the FIX protocol’s white whale, where conversations and innovations are minimal.<\/p>\n

Experts highlight three elements that cause such sluggish improvement in the post-trade sector.<\/p>\n

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  1. A lack of front-to-end protocol facility<\/li>\n
  2. The financial implication of innovating and implementing new technologies<\/li>\n
  3. Slow and incompatible systems pose a risk to operational resilience<\/li>\n<\/ol>\n

    The onset of the pandemic has been a great eye-opener concerning post-trade operations, where the need and urgency to reinvent became imperative. Capital market industry leaders have begun to explore new possibilities and build unique solutions with post-trade challenges at the core. Experts identified the pinch points in the post-trade processes, the root causes, and the right set of solutions that overcome such challenges.<\/p>\n

    The major pinch points included:<\/p>\n

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    • The expense-revolving technologies<\/li>\n
    • The complexity and comprehensiveness of internal processes<\/li>\n
    • The lack of a unified processing pathway in the industry<\/li>\n
    • Regulatory and compliance challenges<\/li>\n
    • Managing cyber risks and threats<\/li>\n<\/ul>\n

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