The current affirmation rate for institutional trades is about 80% in the US. In
this day of no-or low touch trading and automation this is an anomaly and delays
trade life-cycle process improvements. In addition it may be contributing to
higher costs.
It’s crucial that the industry, both buy-side and sell-side participants, address the issues that are blocking a 100% affirmation rate. This will deliver control and cost benefits to all participants and make the process safer and timely settlement predictable.
What drives the Buy-side lack of interest in proactively participating in a process that ensures that the trade will settle as expected and at the same time adds a level of safety to the process? This raises certain questions:
What drives the Buy-side lack of interest in proactively participating in a process that ensures that the trade will settle as expected and at the same time adds a level of safety to the process? This raises certain questions:
Why isn’t the Buy-side motivated to participate
in this process?
Do they understand the importance of the
confirmation / affirmation process?
What needs to be
done to achieve 100% affirmation by T+!?