Straight Through Processing (STP)
Straight Through Processing (STP) is a term used in the financial industry to describe the automation of a trade from start to finish. It is a process that eliminates manual intervention and reduces the time it takes to complete a transaction. STP is used to streamline the process of trading, from order entry to settlement. It is a process that is designed to reduce errors, improve accuracy, and increase efficiency.
History of Straight Through Processing
The concept of Straight Through Processing (STP) was first introduced in the late 1990s as a way to reduce the amount of manual intervention required to complete a trade. It was initially used in the foreign exchange market, but has since been adopted by other financial markets. STP has become increasingly popular as a way to reduce costs and improve efficiency in the financial industry.
STP is a process that is designed to reduce errors, improve accuracy, and increase efficiency. It is used to streamline the process of trading, from order entry to settlement. STP is used to automate the process of trading, from order entry to settlement. It eliminates manual intervention and reduces the time it takes to complete a transaction.
Table of Comparisons
Process | Manual | STP |
---|---|---|
Time to Complete | Hours | Minutes |
Error Rate | High | Low |
Cost | High | Low |
Summary
Straight Through Processing (STP) is a term used in the financial industry to describe the automation of a trade from start to finish. It is a process that eliminates manual intervention and reduces the time it takes to complete a transaction. STP is used to streamline the process of trading, from order entry to settlement. It is a process that is designed to reduce errors, improve accuracy, and increase efficiency. For more information about STP, you can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Automated Clearing House (ACH)
- Electronic Data Interchange (EDI)
- Electronic Funds Transfer (EFT)
- Real-Time Gross Settlement (RTGS)
- Payment Card Industry Data Security Standard (PCI DSS)
- Know Your Customer (KYC)
- Anti-Money Laundering (AML)
- Financial Action Task Force (FATF)
- International Organization of Securities Commissions (IOSCO)
- Financial Industry Regulatory Authority (FINRA)