In general language usage, STP capability is a fairly blurred term that everyone likes to use. This contribution will therefore present STP processing within the product networking of ACTIS.BSP using a concrete scenario.
The diagram shows the process of a customerâs securities purchase. The area backed in green represents the product networking. Within this area, all processing steps are fully automatic; intended manual interventions, e.g. when confirming a trade , are of course possible. However, they are not shown here, as this would render it unnecessarily complex. The rhombuses symbolise the standardised ACTIS.BSP interfaces to the external systems or the bank customer.
STP in internal communication
The highly parameterisable rules of the ACTIS.BSP solutions are an indispensable prerequisite for automation. The securities solution BSP TRADE with its enormous functional bandwidth supports STP from the pre-trade to settlement and through to corporate actions processing. Already the first processing steps show the benefits of the product networking with ACTIS PABA/Q. Via the standardised order import interface, BSP TRADE receives the purchase order of the bank customer into the order entry book. The order entry book notifies ACTIS PABA/Q of the expected cash requirements. In ACTIS PABA/Q, the module cash management checks whether sufficient liquidity exists and reserves the cash amount. If sufficient liquidity exists, BSP TRADE routes the order to the stock exchange. The trade execution module processes the executed order further and automatically generates a trade confirmation for the bank customer. This receipt is, as is all printed confirmations of the ACTIS.BSP solutions, designed according to the bankâs requirements. Furthermore, the module notifies the regulatory authority of the trade, in line with Â§ 9 Wertpapierhandelsgesetz (WPHG). After the trade execution, the processing paths separate. On the securities side, BSP TRADE updates the security accountâs positions and organises the settlement of the purchased securities.
On the cash side, ACTIS PABA/Q initially updates the cash position using the data from the trade confirmation. Separate from the actual delivery, the money is booked on the same day, taking into account the assigned value date. The account management module generates an account statement and supplies all relevant data to the regulatory authority. ACTIS PABA/Q calculates the aggregate customerâs position of the bank customer from the updated securities accountâs positions managed by BSP TRADE and the new cash account balance .
In addition, it must be mentioned that ACTIS PABA/Q, through the integrated payment system ACTIS ZVplus, also takes into account incoming payments of the bank's customer (represented dotted in the diagram) automatically and in real time in the cash position.
STP in external communication
The standardised interfaces of the ACTIS.BSP solutions are an important condition for automated external communication. It is only the interaction of intelligent software solutions with international communication standards that leads to real STP capability in an increasingly global banking business.
In the payment area, the ideal of fully automatic processing is almost tangible. The payment system ACTIS ZVplus fully integrated into the core banking system allows for STP rates of an average of 96%. With the automatic message routing, defined according to individual criteria, the SWIFT message type MT 103+ plays a significant role.
The same applies in the securities area for the ISO 15022 standard introduced by SWIFT in 2002. It allows, for the first time, the automation of the entire transaction chain, starting with the client and ending with the depository of the security traded.
In 2002 and 2003, as the only company world-wide, ACTIS.BSP was awarded by SWIFT two SWIFTReady labels, both for payments and securities custody and settlement. With these quality seals, SWIFT confirmed the high level of STP capability of the ACTIS.BSP solutions.
IT outsourcing as the finishing touch
With its comprehensive range of IT outsourcing services, ACTIS.BSP IT Services offers another option for raising efficiency. Whilst with BPO the bank loses its specialist competence in the relevant business area, IT outsourcing in fact opens up the opportunity to fully focus on the key competence, namely banking. In the computer centres of ACTIS.BSP IT Services, Job Control servers control all processes fully automatically.