Straight-through processing

The Basel Committee's 2013 FX settlement guidance defines straight-through processing as automated processing that lets data be entered into technical systems once and then used for all later processing. The guidance says a bank should pass trades, adjustments and cancellations automatically from the execution system to operations and credit systems, because rekeying causes errors and delay. It also says STP does not remove operational risk. The guidance is about bank operations, not about a retail account type. A broker's STP account is the firm's own label. It is not an FCA authorisation category, and this page does not treat the label as a description of how that firm hedges.