Automated securities trading to save $140 million annually, study concludes

operational risks and financing cost savings ($45 million) operational risks and financing cost savings ($45 million) operational efficiency gains ($42 million) transaction correction cost reductions ($35 million) new revenue sources ($10 million) infrastructure savings ($5 million) “The reduction in cost and risk associated with implementing STP in the securities industry will result in better service, […]

By Doug Watt | November 19, 2002 | Last updated on November 19, 2002
2 min read
  • operational risks and financing cost savings ($45 million)
  • operational efficiency gains ($42 million)
  • transaction correction cost reductions ($35 million)
  • new revenue sources ($10 million)
  • infrastructure savings ($5 million)

    “The reduction in cost and risk associated with implementing STP in the securities industry will result in better service, better prices and increased competitiveness of Canada’s capital markets,” says CCMA president Thomas MacMillan. “Using the study’s methodology, each company should be able to estimate its own benefits from implementing STP.”

    Cap Gemini Ernst and Young did not examine how much it will cost to implement STP, noting that figure will vary considerably, depending on a firm’s size, market share, business strategy and current level of STP readiness.

    Related News Story
  • Canada follows U.S. move to postpone T+1

    • However, CCMA adds that many survey participants believed the study’s financial conclusions were conservative, since they excluded savings that could not be easily quantified, such as cross-border and retail trades and expected increases in annual trade volume.

    Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca.

    (11/19/02)

    Doug Watt

    • operational risks and financing cost savings ($45 million)
    • operational efficiency gains ($42 million)
    • transaction correction cost reductions ($35 million)
    • new revenue sources ($10 million)
    • infrastructure savings ($5 million)

    “The reduction in cost and risk associated with implementing STP in the securities industry will result in better service, better prices and increased competitiveness of Canada’s capital markets,” says CCMA president Thomas MacMillan. “Using the study’s methodology, each company should be able to estimate its own benefits from implementing STP.”

    Cap Gemini Ernst and Young did not examine how much it will cost to implement STP, noting that figure will vary considerably, depending on a firm’s size, market share, business strategy and current level of STP readiness.

    Related News Story
  • Canada follows U.S. move to postpone T+1

    • However, CCMA adds that many survey participants believed the study’s financial conclusions were conservative, since they excluded savings that could not be easily quantified, such as cross-border and retail trades and expected increases in annual trade volume.

    Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca.

    (11/19/02)