A web-service agent-based decision support system for securities exception management

Abstract

With rising trading volumes and increasing risks in securities transactions, the securities industry is making an effort to shorten the trade lifecycle and minimize transaction risks. While attempting to achieve this, exception management is crucial to pass trade information within the trade lifecycle in a timely and accurate fashion. For a competitive solution to exception management, a web-service-agent-based decision support system is developed in this paper. Agent technology is applied to deal with the dynamic, complex, and distributed processes in exception management; web services techniques are proposed for more scalability and interoperability in network-based business environment. By integrating agent technology with web services to make use of the advantages from both, this approach leads to more intelligence, flexibility and collaboration in business exception management. The effectiveness of this approach is evaluated through a use case and demonstration feedback. © 2004 Elsevier Ltd. All rights reserved.