The top 200 banks in the industry were surveyed as part of an overall review of matching operations in the market.
Results show that the advantage of a matching system, inserted immediately post-trade, is that it enables an exception or error in a transaction to be identified earlier in the processing lifecycle, which provides more accurate information to both traders and risk managers about any mismatch between counterparties that may have arisen.
The study demonstrates the superior contribution of a specialised matching system to STP throughput, with the consequent savings in staff time as well as operational and risk management optimisation. Those banks using a specialist system achieved by far the highest rates of STP with 27% of those interviewed reporting rates of over 90% compared with only 7% who used a generalistic matching system.
Despite demonstrating a clear cost savings benefit, efficiency was seen as being the main driver for using a specialist system by 55% of respondents, suggesting internal operating logic and customer requirements dominate the decision-making process in the back office.