What is post-trade processing?
Post-trade processing happens after a trade is executed and describes the key middle-office and operations activities that support the trade lifecycle for financial transactions, including derivatives, securities and cash products. Post-trade processing activities include:
- Middle-office activities such as trade capture, enrichment, validation and matching
- Transaction confirmation.
- Life-cycle events such as corporate actions and novations.
- Client service and operations relationship management.
- Clearing and settlement, including processes preparing for settlement such as affirmation, confirmation, allocation and matching.
- Custody and asset servicing.
- Related activities such as margin and collateral management.
- Regulatory trade and transaction reporting.
- Reconciliation and controls.
Post-trade services are also provided by market intermediaries and associated market infrastructures such as Central Counterparties (CCPs), Clearing Houses and Central Securities Depositories (CSDs), Trade Repositories, as well as by intermediating banks (including custodians) and brokers. An optimised post-trade lifecycle reduces costs, improves efficiency and client service quality, reduces risk and ensures sustainable compliance with regulations.
The financial services industry faces unique challenges in post-trade processing, driven by increasing complexity, the need to adapt to an evolving market structure, and meet new regulatory requirements. These demands and challenges have significantly increased infrastructure and operating costs against an environment of challenging revenue growth.
Streamlined and resilient post-trade processing reduces overheads for firms and should enable financial services to be provided at a lower cost. It also improves market participants’ ability to manage their risks effectively, which ultimately makes financial services more resilient.
Working with market intermediaries and FinTech’s, JDX is at the forefront of leading and driving major financial services industry initiatives across the post-trade market infrastructure ecosystem, charting a strategic course to the future that unlocks transformational cost, capital and balance sheet benefits. Similarly, JDX works with FinTech’s to support the development and implementation of enhanced exception management workflow technology and tooling to support process improvement.
Post-trade regulatory services.
JDX can help our clients in facing new post-trade regulatory requirements, such as trade and transaction reporting, by offering solutions tailored to specific outcomes, including:
- Preparedness – assisting clients in preparing for upcoming regulations;
- Sustainable compliance – helping clients to analyse more cost-effective and process efficient ways of managing the compliance process;
- Operational improvement – assisting clients in targeting improvement to specific regulatory-related post-trade operations processes.
Our post-trade services target:
Enterprisewide regulatory compliance
Including trade & transaction reporting.
Operations performance improvements
Improved efficiency and service quality
Improving your operational risk and control framework
Increased speed to market
How our solutions drive tangible value
Business architecture and process improvement. Implementation support. Project and program delivery.
Operational improvement as a service:
- Deploy processing mining tools to identify intelligent automation opportunities and monitor post-trade process inefficiencies.
- Initiate a process improvement programme to re-engineer and standardise post-trade processing, laying the foundation for the design of an optimised future state operating model that ensures sustained compliance with regulations, improves operations performance and reduces cost.
- Undertake a vendor and solution assessment to identify technology and tools for process transformation.
- Undertake business, data and functional analysis to understand the impact of regulatory requirements on the current operating model for regulations relating to transaction reporting.
- Undertake independent benchmarking and provide peer insight.
- Assist with project, programme delivery and testing.
Data and technology
Data management and analytics. Implementation support.
- Undertake a data quality assessment, data analysis and clean up
- Data governance and management
- Provide implementation and integration support for industry processing systems.
Operate and optimise
Our people have extensive industry knowledge and hands-on experience of
a wide range of transaction management disciplines and strategies, so are well placed to support our clients in improving their operational efficiency and delivery throughout the transaction lifecycle.
- Improve post-trade operations performance by targeting pinch points that are time-consuming, costly or unreliable, identify underlying root causes and defining actions to resolve.
- Undertake remediation and operational delivery services across post-trade activities such as:
- Fails and confirmation backlogs;
- Data analysis and clean-up;
- Transaction backloading and portfolio reconciliation;
- Margin calls & dispute resolution management.
Familiarity with industry leading collateral management systems. Extensive experience in providing integrated support to run-the-bank activities.
derivative confirmations drafted, for a single client in one year.
99.2% reporting timeliness
for MiFID II / MiFIR post-trade reporting requirements.
Successfully completed across all aspects of the transaction lifecycle over the past 8 years.