The term straight-through processing (STP) has become synonymous with automation: Spend more on technology and the need for manual intervention is eliminated, at least in theory. But the focus of that automation is shifting.
Once concerned largely with reducing settlement cycles, firms are now confronted with rising execution volumes driven by algorithms and a surge in cross-border trading. Bulge-bracket firms are still responsible for the lion's share of STP spending, say observers, but rather than putting all of their efforts into the back office--implementing new clearing and settlement platforms--many are bolstering their front- and middle-office systems.
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