GSTPA vs. Omgeo: The STP Race Escalates

July 23, 2001

Abstract

Boston, MA, USA July 18, 2001

In a new report entitled , Celent Communications examines the two new utilities developed to tackle the problem of post-trade, pre-settlement automation, or Straight Through Processing (STP).

STP has quickly become a buzzword for the securities industry. "Much like the Y2K problem, tremendous amounts of hype are sensationalizing the issue and creating a lucrative market for technology vendors trying to get a piece of the pie. Also, like the Y2K issue, it appears that straight through processing will require a massive mobilization of personnel, and of their time and effort," says Fritz McCormick, author of the report. That effort will pay off in the amount the industry stands to save as a result of increased efficiency and risk mitigation through STP initiatives.

Most firms now use batch-type processes for mostly all of the post-trade, pre-settlement operations, such as notices of executions (NOEs), block order notifications, allocations, net proceeds and settlement information. This creates a hectic environment, especially in cross-border transactions. Without operations in real time it is impossible for STP to happen; batch processes simply cannot handle the necessary operations in a suitable amount of time.

The financial services industry has finally awakened to this issue. As a result, several new initiatives have sprung up, most significantly the Global Straight Through Processing Association (GSTPA) and Omgeo. "These initiatives, designed to enable US and cross-border STP, will be keystones in the process of facilitating post-trade data movement," says Mr. McCormick. This report reviews these two new utilities.

A Table of Contents is available online.

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Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

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Table of Contents

 

Boston, MA, USA July 18, 2001

Return to report abstract

INTRODUCTION 3
MARKET OVERVIEW 4
PLAYER PROFILES 9
  GSTPA 9
  OMGEO 12
COMPARING GSTPA AND OMGEO 16

 

        

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