The challenge

Banks and Broker-Dealer clients have active trades settling throughout the day and may require information on the latest holdings position at the custodian in order to manage potential fails. Currently, SWIFT holdings positions are available at end of day or in batches. It is critical, especially for broker-dealer clients, to actively monitor their holdings positions across their accounts in order to avoid buy-in and trade failures on the market.

The solution

The bank or broker-dealer can integrate HSBC’s Holdings API within their own systems in order to obtain access to real-time holdings positions in their accounts where they have active trades. This will allow clients to make a more informed decision whether they need to move positions across accounts or to go to the market for additional shares required for delivery. By having the capabilities to extract the latest information directly, banks and broker-dealers reduce their risks and costs for trade failures.

Benefits

• Operations teams can make better and faster decisions in identifying resolutions to avoid trade failures
• Less time spent in calculating intra-day basis positions on previous day-end and current trades for settlement on the day
• Process efficiencies can allow teams to be more scalable and operate within the necessary internal and external cut-off times to ensure that a trade will settle in the market
• Increased ability for clients to borrow or lend shares on an intra-day basis with clear visibility of their holding positions throughout the day

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