With the T+1 transition, manual tracking and patchwork workflows are being replaced by efficient, automated, and auditable trade matching processes.

The lack of transparency carries serious risks. While some firms think they have everything in place to provide settlement details in a timely manner, real-world audits depict a different reality. For one client, the experience reporting on manual matches versus those made on Broadridge’s NYFIX Matching—a consolidated platform for allocating, affirming, and settling trades with zero fails—to the SEC were vastly different.

A case of two audit trails

Our client, a $5B asset management firm, had two weeks to compile trade details for May and June 2024, a period that spanned the introduction of T+1 settlements and their transition to Broadridge’s NYFIX Matching platform. This allowed for a direct comparison between manual and automated trade allocations.

Manual reporting: An inefficient process prone to risk

Tracking the manual trades highlighted how a process that appears dependable can falter under pressure. At times, the firm’s trading partners were difficult to get a hold of or unable to quickly produce information. The delayed responses and disparate formats meant additional effort to piece together complete trade lifecycles. Nearly the full audit period was spent consolidating data, diverting resources from core business activities.

NYFIX Matching: Increased efficiency, reduced risk

Trades made on NYFIX Matching had a different outcome. The platform’s seamless integration with network systems and adherence to market standardization protocols ensured that trade data was readily available for SEC review.

The expertise and support provided by Broadridge’s dedicated team were instrumental in delivering comprehensive confirmation data in an audit-ready format within three days. When the SEC updated its request to expand the information needed, follow-ups arrived within 24 hours. 

Following a successful audit, the client received a “No Action Letter” from the SEC, enhancing their compliance confidence. The seamless audit process underscored the benefits of moving away from manual systems, offering peace of mind through automated reliability at scale.

Leading the post-trade evolution

With the audit behind them, our client was able to spend the rest of the year capitalizing on NYFIX Matching’s full potential.

The flat-fee model and standardized protocols that work with trading systems around the world helped drive down costs. Risk levels fell, too. Block- and allocation-level matching, granular tolerance settings, SWIFT messaging, and automated settlements improved their ability to mitigate end-of-day errors.

NYFIX Matching harmonized post-trade operations for T+1 success. As T+0 approaches, the real-time, multi-asset execution capabilities mean they’ll be ready for whatever comes next.