SS&C Unveils T+1 Readiness Scorecard

Rhea-AI Summary

SS&C Technologies Holdings, Inc. introduces T+1 preparedness scorecard to help clients streamline post-trade settlement processes for compliance with new SEC requirements. The tool analyzes trade execution workflows, identifies bottlenecks, and provides insights for improvement.

Financial Analyst

The introduction of SS&C Technologies' T+1 preparedness scorecard is a strategic move that addresses the upcoming regulatory changes in the U.S. equity and corporate bond markets. The ability of the tool to analyze post-trade execution workflow and identify areas for improvement is crucial for firms to comply with the new Securities and Exchange Commission (SEC) requirements. This scorecard could potentially reduce operational risks and enhance efficiency, leading to a reduction in settlement fails and associated costs.

From a financial perspective, the tool's adoption could reflect positively on SS&C's revenue streams, as it may become a necessary component for clients looking to adapt to the T+1 settlement cycle. The emphasis on straight-through processing (STP) rates and communication flow with custodians and prime brokers is particularly noteworthy, as these are key factors in achieving the required operational speed and reliability.

Moreover, the scorecard's ability to provide benchmarking against industry standards offers a competitive advantage to SS&C, as clients are likely to seek the best tools to ensure compliance and operational excellence. The long-term implications for SS&C could include stronger client retention and an enhanced market position as a provider of essential regulatory compliance solutions.

Market Research Analyst

SS&C's release of the T+1 preparedness scorecard represents a proactive response to market demand for tools that can handle regulatory changes. The market for post-trade services is expected to grow, as firms across the board will need to ensure compliance with the shortened settlement cycle. By offering a comprehensive solution that integrates with various matching platforms and captures real-time settlement statuses, SS&C is positioning itself as a leader in this niche market.

The tool's consultative aspect, where SS&C works with clients to enhance trade processes, indicates a service-oriented approach that could lead to increased customer satisfaction and loyalty. This strategy may also lead to cross-selling opportunities, as satisfied clients are more likely to consider additional services offered by SS&C.

As more financial institutions seek to optimize their post-trade processes, SS&C's T+1 scorecard and Trade Matching & Settlements Service could see increased adoption, which would contribute to the company's growth and potentially impact its stock valuation positively.

Technology Analyst

The technological implications of SS&C's T+1 preparedness scorecard are significant, as it reflects the increasing importance of fintech solutions in regulatory compliance. The tool's capability to integrate with multiple matching platforms and support various formats of trade instruction delivery showcases the technical sophistication required to navigate today's complex trading environment.

SS&C's global staffing model, which supports international clients trading in the U.S. market, highlights the scalability and flexibility of their solutions. The seamless integration with custodians and prime brokers indicates a high level of interoperability, which is a critical aspect in the evaluation of fintech offerings.

The technology behind the scorecard and the broader Trade Matching & Settlements Service must be robust and agile enough to handle the increased volume and speed of transactions that the T+1 settlement cycle will necessitate. This could set a precedent for future innovations in the space and possibly drive industry standards for post-trade processing technologies.

On-demand analysis of industry settlement data helps clients assess improvements

WINDSOR, Conn. , March 11, 2024 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced the rollout of its comprehensive T+1 preparedness scorecard. Leveraging data from top industry utilities, SS&C's tool enables clients to assess whether their post-trade settlement processes align with current market practices. The in-depth scorecard delivers insight into possible bottlenecks and post-trade areas clients may need to improve for T+1 compliance in May 2024.

"SS&C's T+1 scorecard helped us assess our processes and come up with ways to improve them," said Jason Roslin, Head of Operations at Taconic Capital. "We look forward to relying on this tool to continuously assess our counterparties and delivery rates to ensure our workflows are always in the best shape."

The new Securities and Exchange Commission requirements to shorten the settlement cycle for U.S. equity and corporate markets to the end of the business day requires market participants to adopt faster straight-through post-trade processes. SS&C's scorecard analyzes the client's current post-trade execution workflow, including trade capture timing, matching and affirmation data, as well as a trade communication review.

The review helps the client:

• Identify anomalies within the post-trade process impacting T+1 readiness;
• Assess trade delivery timing to ensure timely matching with executing counterparties;
• Analyze confirmation and affirmation STP rates of counterparties;
• Examine the flow of downstream custodian and prime broker trade communication to determine any required enhancements;
• Evaluate custodial relationships lacking self-affirming workflow to enable auto-affirmation flow

"The industry is working hard on preparing for the implementation of a shorter T+1 trade settlement cycle, and our comprehensive scorecard allows them to quickly assess where they stand as well as any remediation steps they may need to take," said Parthiv Patel, Managing Director, SS&C Technologies. "As part of SS&C's Trade Matching and Settlement Solution, the T+1 scorecard offers clients a useful way to benchmark their post-trade processes against the industry. We are committed to working with all of our clients on a consultative basis to help them make their trade processes more efficient."

SS&C's Trade Matching & Settlements Service fully supports post-trade execution functions such as trade matching/affirmation, trade communication and settlements/fails management for more than 150 clients. Available as a stand-alone service or in conjunction with other SS&C fund services, SS&C's solution automatically integrates with numerous matching platforms, supports multiple formats of trade instructions delivery and captures real-time settlement statuses from custodians and prime brokers. The solution is backed by SS&C's global staffing model, allowing international clients trading in the U.S. market to address booking issues on the trade date.

Learn more about SS&C Trade Management & Settlements Service here.

About SS&C Technologies

SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 20,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale and technology

Additional information about SS&C (Nasdaq: SSNC) is available at www.ssctech.com.

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SOURCE SS&C

What did SS&C Technologies Holdings, Inc. announce?

SS&C Technologies Holdings, Inc. announced the rollout of its T+1 preparedness scorecard to assist clients in evaluating post-trade settlement processes.

How does the T+1 scorecard help clients?

The T+1 scorecard helps clients assess their processes, identify bottlenecks, and improve post-trade areas for compliance with the shorter settlement cycle.

Who benefits from SS&C's Trade Matching & Settlements Service?

SS&C's Trade Matching & Settlements Service benefits more than 150 clients by supporting post-trade functions like trade matching/affirmation, trade communication, and settlements/fails management.

What does the T+1 scorecard analyze?

The T+1 scorecard analyzes trade capture timing, matching and affirmation data, trade communication review, and other post-trade processes to ensure T+1 readiness.

Who is Parthiv Patel?

Parthiv Patel is the Managing Director at SS&C Technologies, overseeing the Trade Matching and Settlement Solution, including the T+1 scorecard.