Benefits of STP:

• Greater profitability due to the reduction in cost - direct impact to the bottom line.
  
• Volume insensitivity.
  
• Reduction in settlement times (T+1 initiatives) leading to a reduction in counterparty risk - less time to default.
  
• Additional opportunities for capital re-investment.

Implementing STP

The industry has already undergone much expenditure with the EURO, Y2K and decimalisation changes within the Securities industry.  A number of these changes resulted in extensive replacement of legacy systems which in itself enabled some of the necessary automation to be implemented.  However, this is unlikely to have been enough.  Not only should each critical process in the settlement cycle be automated, but with each peripheral or supporting process addressed we get closer to 100% STP.  Note that 100% STP is an ideal goal and in reality there will always be exceptions.  The efficiency with which we can manage our exceptions will determine the volume sensitivity of the process.

So that STP can be effectively implemented, a number key actions need to be taken:

Leverage of the experience and work completed during the EURO/Y2Kchanges - during this period all the systems and their readiness will have been examined and detailed business process maps drawn.

Identify those business processes which will benefit most - that is the processes with the greatest relative return on the investment of the money, resources and business opportunities.

Taking a tactical approach to delivering strategic solutions - this does not mean "throw-away" solutions but to deliver specific focused solutions which will deliver the core benefits first.  Advances in technology allow us to build tactical solutions which are also the best of breed components of a large scale strategic architecture.

Implement leading edge tools and techniques - leading edge but not bleeding edge, we will always use the latest proven technology. This will ensure that there is a degree of future proofing to ensure that as the environment changes, a wholesale replacement of systems is not needed.

STP is not just about automating processes, it is also about taking a fresh approach to existing processes. The only realistic way this can be achieved is through a detailed understanding of the existing and possible future processes. This way any change which needs to be implemented is the correct one and in line with the overall STP strategy. 

ILLY has a sound business understanding and solid track record of delivering global, production quality solutions within the Operations area - this stems right from Confirmations, Investigations, cross product Exceptions Management through to Cash Management, Funding and Reconciliations.  Each business solution has been specifically geared towards the tight integration of the business processes leading to Straight Through Processing.  

Our business solutions are developed and implemented using a component based architecture which enables both a rapid turnaround and a scalable architecture for future growth.  Our current developments include the option to include XML interfaces, making each component highly re-usable and easy to integrate with other systems.

At ILLY we regard our business clients as our partners to whom we offer a guaranteed service which is based on our three founding principles:

Customers are the reason we exist

Quality is not for compromise

Focus and Delivery are our Strength

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