Recently, broker-dealers have found their clients demanding SDA, electronic confirmations and the streamlining of the settlement lifecycle. Accordingly, the relative efficiency of middle-office processing has become a means by which brokers can differentiate themselves from their competitors. A sell-side provider that proves its ability to handle increased volumes efficiently would likely attract further increasing volumes. With error mitigation, the provider can also help to keep costs down.

For brokers, the automation of post-trade processes is a no-brainer: It makes smart sense operationally and financially, and it is essential to compete and to comply with regulations. It also enables brokers to be better prepared in their processes for the inevitable future contraction of trade settlement periods.

Many Asian sell-side providers with automated middle-office processes not yet in place are urgently striving to implement them to gain a competitive advantage. Based on industry news, Australian market participants and Chinese firms are rapidly signing with system providers offering automated middle-office suites that can be implemented around existing processes.

With Asian capital markets participants seemingly leading the way in post-trade efficiency, it may only be a matter of time before electronic same-day affirmation and confirmation nears 100 percent, as would befit one of the world’s fastest growing regions.

Eric Wicart is senior vice president for SunGard’s Stream offering.