Novation Processing Bottlenecks
Definition
Novation requires valid messages in CHESS or Derivatives systems, with processing time for validation causing delays. This results in capital being idle over T+2 period, as clearing participants must meet stringent liquidity requirements despite netting.
Key Findings
- Financial Impact: AUD 10M+ daily capital locked in liquidity buffers per major CP; 20-40 hours/month manual validation per participant
- Frequency: Daily for all cleared trades
- Root Cause: Manual notification, validation, and batch processing delays prior to novation
Why This Matters
The Pitch: Securities exchanges in Australia 🇦🇺 tie up millions in capital daily due to T+2 novation cycles. Automation of trade matching and novation eliminates this capacity loss.
Affected Stakeholders
Clearing Participants, Trading Participants, Compliance Officers
Deep Analysis (Premium)
Financial Impact
Financial data and detailed analysis available with full access. Unlock to see exact figures, evidence sources, and actionable insights.
Current Workarounds
Financial data and detailed analysis available with full access. Unlock to see exact figures, evidence sources, and actionable insights.
Get Solutions for This Problem
Full report with actionable solutions
- Solutions for this specific pain
- Solutions for all 15 industry pains
- Where to find first clients
- Pricing & launch costs
Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Novation Failure Penalties
Liquidity Overcommitment Risks
Trading Suspension Opportunity Costs
Compliance Monitoring Overhead
Monitoring Process Delays
Delisting Risk Fines
Request Deep Analysis
🇦🇺 Be first to access this market's intelligence