CIBC Mellon is rolling out a Straight Through Processing Scorecard as part its approach to improve the number of securities trades that are processed straight through by reporting to clients and their investment managers all domestic and global trade instructions. The scorecard identifies reasons for processing breaks.

The launch comes in as the securities industry prepares for T+1 settlement in 2004, when trades must clear and settle within one day.

“CIBC Mellon still sees up to 40% of trade instructions provided to us by way of fax. Of the 60% of trades received through an automated interface, 40% require repair or special handling,” said Rob Shier, senior vice president operations for CIBC Mellon. “Our scorecards are helping clients and investment managers prepare for a next day settlement environment when straight through processing will be essential for completing a trade.”

CIBC Mellon’s STP scorecards are produced monthly at a client and investment manager level, and provide recipients a six-month history of their STP rates to track progress and also identify reasons for trade repairs. “CIBC Mellon’s scorecard has proved to be an effective tool for analyzing STP within our organization. We were able to improve in the areas that were identified resulting in our achievement of higher STP rates,” said David Sexsmith, senior coordinator, domestic/international settlements for Sceptre Investment Counsel Limited.

CIBC Mellon is a founding member and on the board of directors of the Canadian Capital Markets Association, a not-for-profit association representing key stakeholder groups involved in Canada’s capital markets. The CCMA is coordinating Canada’s efforts to move to T+1 and CIBC Mellon is represented on each of CCMA’s five T+1 working groups promoting the development and implementation of Canadian legislation, policies and practices.