STP break puts banks at risk


NEW YORK -- Third-party banks using the continuous-linked settlement (CLS) service may be subject to increasing operational risk as a result of a breakdown in straight-through processing (STP), according to one STP vendor. Wolfgang Prinz, product manager at SmartStream in Vienna, says that because some settlement members -- the banks that settle trades on CLS on behalf of third-party banks -- do not send confirmations on integrated systems, third parties must manually look up the status of t