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STP
(Straight-Through Processing)
STP (Straight-Through Processing) refers to automated financial transactions that process without manual intervention from initiation to settlement. Common in electronic trading, payments, and OTC derivatives.
STP systems reduce errors, lower costs (by 60-80% versus manual processing), and accelerate settlement times. They're essential for HFT and institutional trading where milliseconds matter. Modern STP platforms use API integrations between banks, brokers, and clearinghouses. The global STP rate for FX trades exceeds 90% among major banks. STP is increasingly important in blockchain and DeFi applications where smart contracts enable fully automated settlements.
STP systems reduce errors, lower costs (by 60-80% versus manual processing), and accelerate settlement times. They're essential for HFT and institutional trading where milliseconds matter. Modern STP platforms use API integrations between banks, brokers, and clearinghouses. The global STP rate for FX trades exceeds 90% among major banks. STP is increasingly important in blockchain and DeFi applications where smart contracts enable fully automated settlements.