Trade matching is central to ensuring accurate and timely settlement in financial markets. When discrepancies arise between counterparties, firms must resolve exceptions quickly to minimize risk, ensure compliance, and maintain client trust. However, growing transaction volumes, shorter settlement cycles such as T+1, and increasingly complex regulatory requirements (e.g., EMIR, SFTR, CSDR) are straining manual exception management processes.
Challenge
Before Decisions, the organization faced:
- High Exception Volumes: Increasing trade activity created backlogs of unresolved mismatches.
- Manual Workflows: Reliance on email and spreadsheets increased error rates and slowed resolution.
- Regulatory Risk: Delayed exception handling risked violations of EMIR, SFTR, and CSDR requirements.
- Operational Costs: Significant analyst time was spent on repetitive tasks instead of higher-value activities.
- Client Experience Issues: Settlement delays reduced client satisfaction and trust.
Solution
The company implemented Decisions to automate and streamline exception management:
- Automated Exception Detection: Trade data validated in real time, with mismatches flagged instantly.
- Configurable Rules Engine: Truth Tables defined exception handling logic by asset class, counterparty, and regulatory requirements.
- Exception Workflows: Automated routing ensured the right analyst received the right case with complete trade context.
- Dashboards & Reporting: Real-time visibility allowed compliance and operations teams to track volumes, root causes, and performance.