Much like the European slogan for STP automotive products, “Energise your car”, Straight-Through Processing (STP) has the ability to energise your FX trading platform. How? Because although they were designed for the front office, FX trading platforms still need to connect to the back office in order to process trades. You could look at STP as the bridge between the front and back offices.
So, if technology providers are primarily concerned with your front office, who’s watching your back? More often than not, your own IT department is tasked with the integration. With IT generally overburdened and understaffed, even the most promising FX trading solutions may not be receiving top priority. As a result, they may never make it to the dealing room.
Technology providers aren’t taking this sitting down. Most offer STP integration with a single global player like RTNS, Traiana or MarkitSERV, thus avoiding the need for IT interaction. The rub there is that your IT staff may want to integrate themselves, or choose to work with an STP vendor other than the one supported by your favored FX trading platform, essentially eliminating your solution of choice before it gets off the ground! The ideal solution would be to find an FX trading platform offering connectivity with any one of the big three STP facilitators, don’t you think?