ADP/Securities Industry Software (ADP/SIS), a division of ADP Brokerage Services, has launched something called Auto-Cage. The company says it uses real-time MQ messaging technologies to automate manual cage activities, and so provides brokerage firms with “accelerated and robust settlement processing from a single point of entry.”
David M. Pass, Vice President of W.H. Reaves & Co., tried to explain what this might mean. “We were the first firm to use ADP/SIS’s new Auto-Cage system,” he says. “Because the system is real-time and interactive, it has helped us reduce risk and improve our settlement workflow. The system increases our productivity by automatically ‘DK’ing unknown items and showing us non-matched items online, in real-time. In my opinion, Auto-Cage adds significantly to the overall strength of ADP/SIS’s real-time processing solution.”
“Auto-Cage was designed to facilitate the processing of dealer-to-dealer, uniformed, and non-CNS transactions, as well as transactions failing after settlement date. Auto-Cage implements a real-time MQ platform interface to the DTC, which captures data and initiates transactions in real-time. With this interface, firms can initiate delivery orders and security payment orders, authorize institutional deliveries through the DTC’s PDQ system, systematically create night delivery orders, and capture incoming transactions.
Continually through the day, the system matches real-time messages from DTC to open transactions on the ADP/SIS system, with minimal intervention. Flexible parameters control all aspects of the automation, allowing firms to select those features that are most beneficial to them.
By systematically instructing DTC to make deliveries via a night delivery order file, firms will realize cost savings on DTC delivery charges and eliminate manual input on both DTC and ADP/SIS systems. Avoiding possible errors and omissions in the delivery process will also reduce fail costs. An automated process that ensures that all DTC messages have been received and processed by ADP/SIS eliminates the reliance on manual verification of DTC printouts. Improved opening of day processes reduce fail costs and borrow requirements while ensuring compliance with industry regulations.”
David Swift, General Manager of ADP/SIS concluded: “This enhancement expands our industry-leading back-office capabilities and positions ADP/SIS even further ahead of the competition in straight-through processing. With the leading edge MQ real-time interface to DTC, we’ve eliminated dual entry, and provided additional automation to our clients’ back offices, thereby minimizing costs and improving efficiencies.”