Indian commercial banks are taking a close look at Internet protocol (IP)-based straight-through processing (STP) to offer their corporate clients the benefits of fully automated foreign exchange transaction facility.
STP, among others, will help forex market participants to substantially cut down losses from failed trades, do away with the errors resulting from keying/rekeying data and transfer of information.
According to Mark Redwood, managing director, Automated Dealing Technologies, Reuters Ltd, big Indian public and private sector banks have evinced keen interest in automating forex transactions via STP.
STP will bring down banks/ corporates forex transaction costs and save time by seamlessly automating flow of information about trades and settlement. It will take care of order processing, risk management, route a corporate
