A Guide to Post-Trade Technology and the Need for Modernity

Post-Trade Technology

Post-Trade Technology

The Financial sector has recently seen mounting debate over the appropriateness of post-trade technology in today’s environment of expansive and substantial regulation. As a tool it is clearly essential to the effective and efficient operation of investment or brokering firms today, however the question remains whether it was designed for a simpler trading environment and therefore less effective in today’s constrained market.

The following article looks at why a change to such solutions might be essential in today’s complex financial environment.

The Problems for Post-Trade Technology

As firms’ systems grow and adapt within the evolving financial world, the potential for serious problems increases steadily. Missed business, ineffective risk management and failed trades could all be brought about by this new trading environment and the use of post-trade technology that is not built to cope with such complex regulation.

Although regulation has always been an integral part of the financial world, the sheer volume of legislation and rules that has been seen since the financial crisis in the late 2000s has changed the landscape significantly. With further regulation likely over the coming years, firms need post-trade technology that is adaptable and flexible to such changes.

There is also the added issue of increasing volumes of trade on the financial markets. A white paper from London Stock Exchange Group (available on the UnaVista website) noted that over the last five years a four-fold increase in the traditional asset class of equities has been seen in their Order Book. This rise, coupled with a lack of common standards among trading firms’ systems, has meant the processing efficiency has been damaged.

The Need for Flexible Technology

As regulation grows alongside an expanding trading market, the costs and issues associated with integrating archaic systems across a number of firms in different countries will become such that efficiency is reduced.

Investment and brokering firms need more flexible post-trade solutions to prevent such issues down the line, and moves to standardise systems are essential to simplify integration between parties. Post-trade technology needs to be adaptable and flexible to keep up with the evolving trade environment and cope with shifting user demands – something that will help future-proof such tools and ensure their long term value.

April Orchid is well known finance and business content provider within the business and finance industry. As a close follower of UnaVista, she prides herself on writing clear incisive articles with her strong understanding of today’s financial commerce.

Solve Your Money Problems with Car Donations

Car Donations

Car Donations

One must be thinking what car donation is? The answer is here. Car donation is a process of giving away an old automobile/vehicle to a charitable trust or an organization. In United States these donations provide certain tax benefits and therefore, car donation has become a famous practice there. Certain critics have compared car donation as a mean of tax shelter. Due to car donation, the organizations in United States which do not earn much profit rely on car donation for the sake of financial help to cater to their needs. This process is spreading pretty widely on a commercial basis. According to a survey conducted in the year 2001 it was found that 733152 tax payers reduced their tax paying by $550 million. This process benefits both, i.e. the seller as well as the charity. Thus, the process is beneficial in multiple ways.

As we all know that advertising is the easiest way to dispose any old belonging (here, CAR), the person donating the car needs to fulfil certain post donation requirements so as to be eligible for the deduction of tax and reap those benefits. These include things such as obtaining a written acknowledgment of the car’s subsequent sale by the charity and itemizing various tax returnsinstead of taking the standard education into consideration. Now, for the vehicles which have a market price of less than $500 the deduction amount almost comes down to the donor’s own estimated price of the car’s value, even if the charity receives less money from its sale in in the market. Now, for cars whose market value is greater than $500 are sold in an auction. The United States Internal Revenue Service advises which started in the second half of the year 2004.

The rules for determining the amount that a donor may deduct for a charitable contribution of a qualified vehicle, including an automobile, with a value claimed over $500 can be changed at the beginning of 2005 as a result of the American Jobs Creation Act of 2004. In general, we can conclude that that Act limits a donor’s deduction to the amount of the total proceeds from the charity’s sale of the auctioned vehicle. For the vehicles which are valued over $500, taxpayers are required to attach the charity’s written acknowledgment to their tax return so as to avail the benefits of tax. It has been noted that the car donation schemes in United Kingdom are different from the ones in United States.In United Kingdom, there are no tax benefits on car donation. Car donation is widely practised in America ranging from highly-organized to truck companies that support a charity.

It is obvious that a charity will be indulged in some kind of donation. So various charity use car donation directly to transport volunteers and suppliers to cater to the various areas which need help. Some even have their own car lots to sell the donated cars but many of them have their donations processed through auto auction companies.