By James Ward, Senior Solutions Manager, SS&C Advent
With the move to T+1 settlement now a reality, the manageable pace of post-trade operations has been accelerated and the need for speed, precision and automation is greater. This compressed timeline for trade confirmation and affirmation has put pressure on investment managers to modernize their post-trade processes.
At SS&C Advent, we saw the impending T+1 shift as an opportunity to empower our technology users. We recognized the critical need for solutions that help you meet the new regulatory requirements, streamline your workflows, and reduce risk. That’s why we’ve focused on enhancing our capabilities to ensure you’re not just compliant but positioned for success in today’s T+1 landscape.
1. The Need for Speedy Confirmations
The most immediate impact of T+1 was on trade confirmation and affirmation. Under the previous T+2 timeline, firms had a full day to complete their post-trade workflows.
In today’s T+1 world, trades must be affirmed by the evening of the trade date. This leaves no room for manual processes or delays caused by batch-based systems.
To address this, we added a new service, which allows clients to retrieve DTCC confirmations in real time for the Advent DTCC interface variants that integrate with the APX or Moxy solutions via SSCNet. When a broker sends a confirmation to DTCC, this real-time connection enables faster access , minimizing delays, reducing risk and ensuring your team can meet the new, tight deadlines. It also offers the benefit of working with a single partner for both data and post-trade processing.
2. T+1 Reporting: The Challenge of Centralized Recordkeeping
T+1 also mandates that investment managers maintain more detailed records, specifically confirmations and the timestamps for when trades were affirmed. For firms that historically relied on custodians or prime brokers to settle their trades, gathering this information from multiple sources can present a challenge.
Imagine having to contact ten different brokers and five custodians to get official trade records and timestamps. The administrative burden is immense.
Our new recordkeeping functionality through SSCNet provides a simple, centralized solution to this challenge. By streamlining confirmations and affirmation timestamps onto a single solution, we help you satisfy two critical T+1 recordkeeping requirements without needing to implement a heavier, more complex process. Moxy can also furnish allocation timestamps, provided firms send their allocations electronically to their brokers.
3. Trade Matching: Embracing an Earlier Stage in the Workflow
Since the implementation of T+1, many firms seek to ensure trade details are consistent with their counterparties earlier in the trade lifecycle. This helps prevent discrepancies before they become a risk to settlement.
In addition to our existing solutions for streamlining trade notification and reconciliation, there’s now an even earlier alternative for clients looking to reconcile trade details. Our enhanced matching capabilities now include “street matching.” This feature offers a more efficient way to validate trade details with your counterparties well before settlement, further streamlining your post-trade workflows.
Ready to Navigate the T+1 Landscape with Confidence?
Adherence to T+1 settlement doesn’t have to be a source of stress. At SS&C Advent, we are committed to keeping you prepared for regulatory changes and evolving client needs, and we have the technological prowess and expert talent to do so. Our enhanced capabilities are designed to address the key post-trade challenges firms face, giving you peace of mind and helping you thrive in this new environment.
Whether you’re looking for real-time trade confirmation, a centralized reporting tool, or improved trade affirmation and matching capabilities, SS&C Advent has the right solution to help you navigate the complexities of T+1 settlement with confidence.
If you’re a current client, contact your support team to learn more.
If you’re not yet an SS&C Advent client, contact us here to discover how we can help you streamline your post-trade operations and navigate the complexities of T+1.
About SS&C Advent
SS&C Advent helps over 4,300 investment firms in more than 50 countries—from established global institutions to small start-up practices—to grow their businesses, minimize risk, and thrive. We have been delivering unparalleled precision and ahead-of-the-curve solutions for more than 30 years, working together with our clients to help shape the future of investment management. Find out how you can take advantage of our industry-leading solutions to support your business goals. To learn more about the right solutions and services for you, contact info@advent.com or visit www.advent.com to learn more.
_____________________________________________________________________________________________________________________
FINVENT Software Solutions is a producer and distributor of financial software applications and custom engineering services for the investment management sector. The firm serves financial institutions in European and African countries, including asset managers, family offices, investment banks, pension funds and hedge funds.
Finvent is the sole SS&C Advent distributor worldwide, and its products are natively integrated with those of SS&C Advent.
_____________________________________________________________________________________________________________________
Disclaimer: Nothing contained in the aforementioned content or its references constitutes an investment solicitation or a recommendation of any type.