Page 7: The Goals Of Straight Through Proccess
Morgan Stanley Dean Witter is currently implementing a concept called Straight Through Processing. This will be put into place over a multi year period, with the aim of producing a seamless customer service. This represents a shift not only in the information technology infrastructure, but also in organisational structure as it moves from procedure to event driven. The aims of Straight Through Processing are to:
- Meet changing time restrictions - the new system should be able to respond to the compression of settlement time within the New York market and the extension of trading hours brought about by Electronic Crossing Networks by working on-line in real time. It will also prepare for global electronic brokerage, communication networks and exchanges.
- Manage enterprise-wide risk - straight Through Processing will provide an enterprise-wide view of key exposures credit, market and operational risk. It will reduce the time to provide global risk exposure for some types of complex risks from weeks to days. It will also reduce operating errors and improve the quality of reference data, such as accounts and product literature.
- Meet growth and expansion -the volume of business is growing rapidly and the new system is currently designed to handle one million transactions per day.
- Decrease time to market -the business requires a system which can respond to new business opportunities more quickly, as well as integrate local suppliers's packages rapidly and at low cost.
- Improve cost/productivity -the system aims to improve operational productivity for standard products and increase the number of markets and products that can be processed straight through, without the need for manual intervention.
Straight Through Proccess should enable Morgan Stanley Dean to:
- provide single customer view
- improve and extend client connectivity
- meet customer demands, e.g. confirming trade within a set number of minutes and the ability to service any global business from any location at any time of day.