New research from TowerGroup suggests it may be time to deliver a eulogy for the usefulness of the ‘STP’ acronym, particularly when it comes to one key audience: the asset manager. In recent years, according to TowerGroup, straight-through processing (STP) has generated increasing discussion and marketing momentum throughout the securities industry. Today, this catch-all acronym for post-trade technology, integration and automation has become so pervasive that it seems to have taken on a life all its own, said the company. TowerGroup claimed that the reticence of the buy-side to buy in to STP hype validates its claim that STP evangelists too often put the cart before the horse – extolling the virtues of integration, rather than the business objectives that integration can help to achieve. TowerGroup suggested that the overexposure of STP as a marketing vehicle has made it difficult to provoke a reaction from prospects, while descriptions of its benefits have become too boilerplate to help financial institutions distinguish between products. The incentive for each industry segment to automate the exchange of information is too often lost within generic value propositions, said TowerGroup.


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