Success Stories
Increasing the exceptions settlement rate of securities at post-trade RTGS for a Global Investment Bank
Business Need
The client is a global player in the securities trading market having extensive presence in most of the functions of the trade lifecycle. With most of the processing technologically compatible with the global markets, exceptions handling and securities settlement on RTGS has been a challenging task. The penalty attracted for the delay has been impacting its profitability.
- The experience in handling and settling the post-trade deals has been imbalanced as the trade volume has been increasing
- The compliance with the global market timings and cost associated to operate the transactions has made the post trade operations an expensive proposition
- The number of exceptions increased as the trade volume increased.
Hence, there was a need for post trade operations handling by low-cost and richly experienced team that would enhance the exceptions handling rate and settle the trade on value date.
HCL Solution
HCL used prescriptive model wherein it uses the internal applications of the client with the procedures prescribed in the Detailed Process Analysis Documents. As per the client's processes requirements, 11 teams are formed with about 15 members in each team. The teams are to follow the sub-processes prescribed in the process documents. Daily all the teams reports to client's London office so as to assess the daily number of trades settled. The unsettled trades are escalated to London office for the final processing by the client. The processes are reviewed every year and the best possible recommendations are forwarded to the client for process improvement.
- More than 98% exceptions are settled on the value date. The rest exceptions are referred to the client for taking it ahead with the traders at the front office.
- The ledger entries and books accounts are updated, on daily basis, with the custodians on the value date ensuring timely payments/transfer of securities to the respective parties.
- The reduced cost of handling the post-trade global securities transactions has resulted in improving the profitability.
