Straight Through Processing

What is Straight Through Processing?

Straight Through Processing meaning A term for a fully electronic administrative system backstopping financial trades. Currently, trades may involve some data reentry or manual processing. This may lengthen the time between when a trade is made and when it can be settled. Straight Through Processing offers a reduction in settlement and clearing risk.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary