Boosting Trade Efficiency and Reducing Settlement Failures with Automation

Client Overview

A US-based investment management firm, managing high trading volumes across multiple markets, sought a solution to improve operational resilience. Their primary focus was on reducing failed trades, streamlining broker communications, and improving trade settlement efficiency to ensure timely confirmations and seamless execution.

Problem Statement

The client faced significant operational bottlenecks:

• High trade volumes created operational strain.
• Frequent failed trades led to penalties and reduced efficiency.
• Delays and errors in trade matching impacted timely settlements.
• Inefficient broker communication prolonged settlement cycles and created unnecessary risks.

These issues threatened client satisfaction, regulatory compliance, and overall trading performance.

Solution Provided

Decimal Point Analytics (DPA) contributed specialized expertise to strengthen trade settlement optimization:

• Supported pre-matching to settlements by leveraging Aladdin tools and providing subject matter expertise in proactive trade monitoring.
• Introduced Standard Operating Procedures (SOPs) to streamline trade flow and reduce errors.
• Developed effective communication management processes to improve broker interactions during high priority trades.
• Established trained back-up resources to ensure operational continuity during emergencies.

Outcome

The solution transformed the client’s trade settlement operations, delivering tangible improvements:

• 90% of trade volumes for pre-matching are handled by DPA, with one FTE managing an average of 5,000 trades per month.
• ~35% improvement in overall trade settlement efficiency.
• Significant reduction in failed trades, minimizing operational risks and financial penalties.
• Seamless handling of peak volumes of ~1,300 trades without disruption.
• Faster, smoother trade execution that enhanced client satisfaction and operational accuracy.

Key Takeaway

In high-volume trading environments, automation and process standardization are critical to eliminating inefficiencies, preventing failed trades, and building client trust. Robust communication systems and resilient backup planning ensure that even peak workloads can be managed without compromise.

At Decimal Point Analytics, we empower investment managers to achieve operational excellence in trade execution and settlement.
Connect with us today to explore how we can help optimize your trading operations. Get in touch.