The challenge

Currently, asset owner and asset manager clients obtain SWIFT notifications and e-mail reporting across their service providers for various markets in order to identify any open trades with exceptions. The fund manager - operations teams need to follow up on these trade exceptions and provide the necessary information to various parties internally and externally in order to resolve the trade before settlement cut-off. Normally, fund manager -operations teams contact their global custodian in order to confirm the latest status of the trades, either when they have sent the correction or to follow-up if there have been any changes to the status. Any delays in resolving these exceptions may result in potential buy-ins or penalties due to a trade failure.

Solution

The fund manager can integrate HSBC Securities Services Global Custody Trade Status API within their own systems in order to view the latest status of their trades in the respective market. This will allow for a standardised and consolidated view of trade exceptions that can easily be retrieved by any of their teams for processes such as internal resolution exceptions or contacting their clients and counterparties. By having the capabilities to extract the latest information directly, banks and global custodian can more quickly identify these exceptions reducing layers of communication and e-mails. 

Benefits

• Fund Manager Operations teams can make better and faster decisions in identifying resolutions to trade exceptions.
• Improve efficiencies in resolving trade exceptions through on-demand trade status updates.
• Less time spent in investigating trade exceptions and contacting service providers via e-mail.
• Process efficiencies can allow teams to be more scalable and operate within the necessary internal and external cut-off times for processing post-trade instructions.

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