STP/T+1 boils down to implementing a conveyer belt/transaction management infrastructure and controls. This involves eliminating multiple-entry of data, analyzing each existing component and integrating them with this infrastructure, and research alternatives to various existing software components.

The key is the integration to the complex legacy environment. However, several vendors are marketing the "Out-of-the-box" approach as the solution - which often portrays the integration problem as a thin-line. At Masfin Consulting, we call this the "fallacy of the thin-line" which often proves to be budget busters. 

We believe that in order for an organization to effectively implement its STP/T+1 strategy, it must automate internal trade tasks, streamline operational infrastructure and promote global industry standards.

The move T+3 to T+1 will dramatically reduce the credit and operational risk by significantly reducing the number of unsettled trades and the daily settlement risk in the US by $760 billion. (source: Tower Group). Resulting in shorter trade cycles, thereby increasing liquidity and hence creating new business opportunity.

Masfin Consulting has successfully helped its clients’ avoid the "Y2K like multi-million dollar out the box" solution and instead helped them leverage their own internal resources by making their systems work!

Please see our STP success stories