siliconindia | | July 20188TRANSFORMATION OF MARKET OPERATIONS THROUGH DIGITALIZATIONBy Suvrata Acharya, SVP, NIIT TechnologiesAdhered to the major global benchmarks and standards of quality and Information Security, NIIT Technologies serves customers across the Americas, Europe, Asia and Australia. T he financial services sector especially capital market has always been the first to adapt to any newer technology. This is because of the structural complexity in which it operates. Years ago, the entire trading life cycle was being executed through paper-based manual system till it was replaced by computerized workflow-based sys-tems. Internet based order entry sys-tems were made available for the buy-ers in early 2000 which improved the cycle time. Today, there are number of straight-through platforms operat-ing in this market to support activities such as order management, trade set-tlements, commission calculation and client reporting. More focus has been given to build efficiency in product and trade life cycle processes so that it can reduce trade settlement time and manage the market risks more effec-tively. Not much innovation was done from buyers' perspective, especially related to investors' awareness and client relationship. Digitalization is expected to bridge these gaps result-ing in bringing more investor partici-pation in the market.Simplify the Operations Through Digitalization and AutomationLast few decades, the market par-ticipants have tried to structure their operating models into more indepen-dent functions or silos to address the scalability challenges. Overall opera-tion has been broken into front, mid-dle and back office, each of having its own processes. These processes were moved inside the dis-joint platforms to handle increasing scalability. Result-ing in a complex operating model and increased risk of failure. To minimize the impact of risk on economy, finan-cial regulators brought in new gov-ernance policies. Adding more com-plexity to the already complex model. The complexity is the main deterrent force for the new entrants in the mar-ket. The simplification of the overall model is possible through digitaliza-tion and automation. Digitalization will break the silos through efficient orchestration of processes across di-verse platforms. Since the core princi-ple of digitization is around client cen-IN MY OPINION
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