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Trade Operations - It's all about Trust and Relationships

Sep 13, 2010

EXTON- An organized, efficient, and detail-oriented operations department is at the core of every successful investment advisory business. STP utilizes proprietary web 2.0 based systems as well as industry tools such as Bloomberg, Charles River, Omgeo CTM and Eagle Investment Systems to streamline the back-office process, eliminating manual procedures wherever possible. We often refer to operations as the "last line of defense" After all, it's our job to catch and remedy mistakes before they evolve into bigger, more costly errors. It can often be a thankless job as you may not hear praise for successes achieved. However, rest assured that you will certainly receive "constructive feedback" if a mistake is not caught!

In trade operations, success cannot be achieved without outstanding working relationships with both external and internal clients. Our external clients are the brokers and custodian banks that we confirm and settle trades with every day. At STP, our custodian banks provide us with daily trade fail and treasury non-receipt reports so that we can proactively manage the trade settlement process. We are all striving to achieve the same goals, working quickly to settle trades accurately and avoid costly trade fails. Our internal client relationships are equally important as we are a firm where individuals work closely together from the top down. In trade operations, we rely heavily upon the portfolio accountants and administrators who reconcile the daily trade activity to identify any potential issues. Trade reconciliation breaks are then communicated to trade ops so that they can be resolved before causing a negative financial impact.

Having an excellent rapport with your clients is critical to the success of an operations department. We strive to maintain a friendly, courteous and professional relationship with all of our clients. We take a proactive approach to our daily business, calling and emailing counterparties to ensure all trades have settled on a daily basis. Internally, we do not have any walls or boundaries between departments. This cohesiveness allows us to work quickly to resolve any potential issues or discrepancies. At STP, trade operations strives to earn your trust by effectively supporting your trade activity and developing long-standing professional relationships.

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