Back Office Solutions

Straight Through Processing :

STP (Straight Through Processing) is automatic processing of securities transactions from inception of the trade to its settlement. That is, once an order is executed, there is no manual or electronic intervention in the processing chain to complete its settlement. Once a trade has taken place, the movement of securities and funds from one account to another does require no or minimal manual / electronic intervention. It can be understood as a concept that eliminates the need to re-enter information in the processing chain which has already been captured in the chain earlier. If some information is already available at any node of the chain and is to be re-used, STP finds out a way to do it.

Functions :

STP functions are completely based on SEBI guidelines. Currently there are three entities involved in STP i.e. Trading Member, Fund Manager and Custodian. Each of them have to send Contract notes in ISO 15022 format with their digital signature to other market participants for trading, clearing and settlement activity.

Once the trade gets confirmed at Exchange by Broker, he sends Message Type (MT) 515 to client or Fund Manager. As a response, client sends MT 598 to Broker as acceptance / rejection note. If the MT 515 is accepted by client, then it is forwarded to custodian in the form of MT 540-543 and in reply to that, the custodian has to send MT 544 - 547 to client. Finally, after settlement of the trade, the Custodian has to send MT 548 to both Broker & Client.

Salient Features :

NSE.IT provides XSstp® services to carry out the above-mentioned tasks. In addition, we also provide the XSstp® Converter to our customers. The Converter is an Offline Utility used mainly for the purpose of Digital Signing & verification of Signatures. It is also used for the conversion of files from ISO 15022 to CSV and vice versa. All message types supported by us are based on SEBI Format and all the service providers (NSE.IT, FT, NSDL and BSE) have to follow the same. For inter operability among all these service providers STP Hub has been developed by National Stock Exchange of India Ltd and all the actions pertaining to Hub are taken care by NSEIL.

The XSstp® site (www.XSstp.com) has a number of features which are as follows :

	Auto Upload: One can Uploads bulk files without selecting receiver.
	Folder Upload: One can uploads bulk files for a single receiver.
	Smart Download with Indicator: One can downloads multiple files in a single shot.
	Auto Refresh: The File Receiving Page (Inbox) refreshed itself with a fixed interval.
	Today's Files Status at One Click.
	Facility to create ISO Messages for customers who do not have Back Office.

The module Converter has following features for the different entities :

	Folder CSV to ISO Conversion.
	Multiple ISO Files generation as per different Receiver.
	File/Folder Signature with ISO Sequence Verification.
	File/Folder ISO Extraction with Signature Verification.
	Separate Verification Log Files for both Successful and Failed Files.
	Separate Folder Verification.
	File Storage on the basis of Date & Message Type.
	For Investors or Fund Managers Only While Converting MT 515 ISO into CSV, Investor can view all the Contract Notes of a Single File in one shot and generate their respective 541/543 and 598 in case of Acceptance & Only 598 in case of Rejection with only few manual inputs.
	For Custodians Only While Converting MT 541/543 ISO into CSV, Custodian can view all the Contract Notes of a Single File in one shot and generate their respective 548 for both Broker & Investor with few manual inputs.
	Currently the STP model is restricted up to only institutional trades of Equity Segment settled through custodians. The model still requires adjustments to incorporate additional requirements of communication among the other intermediaries i.e. Banks, Clearing Corporation, Depository and Exchange.

Benefits  :

A number of benefits have been provided to the Indian securities market such as :

	Reduction of manual intervention and provide automation.
	Reduction of trading cycle up to T+2 days.
	No physical boundaries for trading activities.
	FIIs can easily take part in the Indian securities market.
	Avoid recapturing of information.
	24 X 7 availability.
	Enhance security among the transactions using Digital Signatures.
	Online availability of all the market participants.
	Standardization in the market with the inception of Message Types in ISO 15022 format.
	Interoperability between all the service providers through the Central Hub.
	Drastic reduction of paperwork .

Downloads  :

	Procedure for New digital certificate for XS STP (This is for use by companies applying for STP services and applying for digital certificate for the first time through NSE IT Ltd)
	Procedure for Additional digital certificate (This is for use only by existing customers, who have earlier procured digital certificate from NSE IT Ltd)
	Procedure for renewal of Digital certificate (This is for use for renewal of existing digital certificate)

For further information email us at: marketing@nseit.co.in