Trade processing is one of the most duplicative cost structures in the industry, as both sides of the trade take equal post trade steps. While money managers have started outsourcing trade processing for certain asset classes, most institutions do not mutualize the costs of standardized trade processes.
Goals and Objectives
This use case involves the “mutualization” of standardized trade processing functions through a utility model shared by multiple participants. This allows participants to benefit from economies of scale and networking effects.
Shared operations platform, Managed service utility model, Distributed ledgers, Shared network and databases
Use Case Summary
Industry utility model integrates core post trade processing stages (clearance and settlement, custody, financing, and books and records), sharing costs among participants, and reducing individual burden.