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.

Make Yourself Familiar with Mutual Funds

Mutual Funds

Mutual Funds

Mutual fund is defined as the financial intermediary and is known as one of the most ideal investment product for most of the investors.  The investments can be made in the form of the shares, debt securities, money market securities etc. the according to the investment scheme, these funds are invested by the managers by several ways in order to help people customize their investment portfolio according to their requirement.  There is a great difference between the mutual fund investment and individual stock statement. High risk mutual funds are those which are concerned abut high risk investments like junk bonds.

There are two basic options that are available for the mutual funds. One is the loaded mutual funds and the other one is the no load mutual funds.  A loaded mutual fund is the one in which you are obliged to pay the commission at time of making the purchase or during the selling of the shares.  Open end mutual funds are another type hose calculations are done on daily basis and the shares that are issued to the investors gain profit on the daily basis. Closed end mutual funds are those in which the investors have to wait until their investment clear up to redeems for the payment of the cash.

For new investors and the beginners the mutual funding is the best thing to start from even if you are financially not strong and you have no experience whatsoever in this field.  With small initial investments you can still get into the world f the market. By this you can easily avail the diversified packages otherwise things can be very difficult and complicated for you to manage. You can prevent yourself from caring about day to day management of the stocks because you can hire a professional firm to take care of such matters for you. These professionals can manage your money because they have skills to take care of the money in a wise manner.

With all the advantages there are some disadvantage as well because there is also a gamble that is associated wit these investments. You are supposed to put all your trust on the firms and you are giving the responsibility of your money to the ones who are may be responsible or not. If your manager is not experienced your funds will not be able to get managed properly and you can lose your money in no time.