Solving the post-trade transparency challenge

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Solving the post-trade transparency challenge

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Post-trade transparency challenge

New SWIFT report: Solving the post-trade transparency challenge

From packages to pizzas, today we can track the status of almost anything we order. But currently there’s no way of tracking a securities transaction across the various intermediaries in a trade.

As a result, securities players face significant costs and risks associated with failed trades that could be resolved more quickly – or prevented altogether – if there was a way to track their status along the processing chain.

SWIFT is collaborating with market participants to solve this. The journey has been accelerated by the settlement discipline regime under the Central Securities Depositories Regulation (CSDR) and market initiatives to shorten settlement cycles to T+1.

This new SWIFT discussion paper, Solving the post-trade transparency challenge – The case for a unique transaction identifier in securities, highlights the work that has been completed so far to deliver post-trade transparency at industry level. It also sets out the roadmap for industry-wide adoption of a Unique Transaction Identifier (UTI) – based on the existing ISO 23897:2020 – that would allow market participants to track securities transactions from end to end throughout the lifecycle of a trade.

Along with the cost savings that come with reduced investigations and fails, other benefits of industry adoption of the UTI include reduced operational risk, improved transparency across the post-trade lifecycle, improved client service, and supporting the industry’s digital transformation agenda.

The UTI has the potential to be a key enabler of change for the securities industry. Download the paper to find out more about the work ongoing and the benefits the UTI can bring to your organisation.