Post trade processing occurs right after a transaction wherein all the details of the deal are being examined and approved by both parties. The process helps in finding faults of the trade and validating that the conditions are met. If all is well, transfer of assets will then be arranged and records of ownership are sealed accordingly. The whole process is not so secure considering that the trading has no clearing houses, which is the most common scenario of over the counter derivatives and other non-standardized markets.
Human mistakes are undeniable and since there are many cases of trading done with both parties using only a phone to communicate, the risks of miscommunication may arise which could result to conflicts between both parties. During a post trade processing, everything is carefully inspected by both parties to know that the other party complied with the conditions. If there are mistakes, both parties can try to sort things out before pursuing the deal or cancel it if the risks are high.
If you are an operations manager, it is one of your duties to ensure an efficient post trade processing when engaging a trade settlement. You have to look for opportunities on how to reduce the cost of the trade while maximizing profit. Since human errors have no room for such an important process, automated tools are your best bet for computations, reports and assessment of the deal. Automated post trade processing helps you minimize the risks and make it easier to spot a fault in the trade. It also helps you decide on how to address settlement problems.
Automated post trade processing minimizes manual operations and automates workflow which in turn minimizes operational risks. Every step in the post trade process is automated thereby increasing efficiency and speeding up processes. This cuts the operational costs caused by errors in the settlement of trade. There are many available post trade processing you can choose from. Pick one that offers the needed benefits of automated post trade processing