Trade exceptions are an industry challenge that are estimated to drive operational headcount for all trading counterparties, 包括买方和卖方公司及其代理. Trade exceptions can occur at any stage of the trade lifecycle, from trade execution to trade settlement and cannot be ignored – regardless of how infrequent they occur.
The process of exception handling is a laborious task; a single exception can create up to 30 email exchanges, bringing unnecessary operational risk that requires the attention of resources across numerous front, 中间和后台团队. The manual work required to correct these exceptions increases substantially beyond trade date, 因为每个异常都需要单独处理. Costs continue to rise past settlement date creating further financial exposure and involving counterparties who must manually intervene with the exception.
为什么会出现异常??
贸易例外的发生有多种原因. Incorrect or incomplete standing settlement instructions (SSIs) and missing allocations are most common from firms relying on manual processes for pre-trade matching and the management and communication of SSIs.
Exceptions can also occur due to an inefficient exchange of critical trade information as well as inadequate and fragmented visibility into trade status. This can result in delays for both detecting and resolving even the most straightforward exception. Shortened settlement cycles have amplified these operational weaknesses since there is time available to resolve an exception.
应该如何管理异常?
When exceptions occur, they should be resolved quickly and efficiently to prevent settlement fails. Processing trade exceptions are often hindered by mistakes caused by manually handling time-sensitive exceptions An automated dashboard or platform that is accessible to all trading parties for consolidating, publishing and communicating exception management would reduce the time and effort needed – helping to drive efficiencies, 更高的透明度，最终, 异常解决.
CSDR的SDR为何重要?
Amid a backdrop of evolving regulatory obligations and rigorous implementation, it is imperative for firms to reassess current operational workflows and processes for managing trades, trade exceptions and settlement management in order to ensure compliance.
Of immediate concern for Asia Pacific firms that trade in securities settled at a European Union (EU) domiciled Central Securities Depository (CSD) is the fast-approaching Central Securities Depositories Regulation’s CSDR) 结算 Discipline Regime (SDR) – to be implemented in February 2022. The potentially huge global impact of CSDR’s SDR will require in-scope firms to establish processes and controls to mitigate settlement delays and support straight through processing (STP) to maintain high settlement rates and settlement efficiency. 贸易失败会产生影响, as firms will incur cash penalties for failed trades and also face mandatory buy-ins. 结算 exceptions are a critical component of the 帖子-trade process and should not be ignored or overlooked.
为什么自动化是关键?
基于a的结果 存最近对亚太地区50家公司的调查, many firms are still relying on multiple touch points to monitor and receive settlement exceptions. 具体地说, among the multiple channels for managing settlement exceptions, email and portal set up by custodians were high on the list at 88% and 69%, 分别, followed by the fax machine (8%) and Order Management System and Portfolio Management System (8%).
The survey further revealed that for firms trading with counterparties in the EU, more than half (59%) stated that the CSDR’s SDR will have some impact on their 帖子-trade workflow. Firms are also bracing for more stringent monitoring and efficient communications with counterparties – to ensure timely settlement. 因为特别提款权, operational cost is also expected to increase from additional resources needed to manage penalties and mandatory buy-ins. 考虑到欧洲和亚太地区的时区差异, meeting settlement timelines will be a major challenge if processes are not automated.
Why is there a need for a centralized platform to manage trade exceptions?
虽然我们过去很少看到亚太地区的贸易失败, 现在的意外事件就不能这么说了, 市场波动和不确定性变得更加普遍. Firms should earnestly review their manual processes and older systems to ensure operational success and settlement finality. 除了一个集中和高度透明的平台, 还需要一组协作工具来识别, track and rectify settlement exceptions to expedite remediation. 以防止重复出现相同的异常问题, 有意义的最新数据和, 更重要的是, data analytics will pave the way in detecting the root causes and troubling trends for trade exceptions, allowing a more holistic view for solving and preventing trade and settlement exceptions.