DTCC Connection

Sep 04, 2014 • DTCC Connection

DTCC and Industry Partners Establish New Client Data and Documentation Utility

By Shannon Chisholm

The Depository Trust & Clearing Corporation (DTCC) and six global banks have established Clarient Entity Hub, a comprehensive reference data solution providing control, standardization and transparency during the client onboarding process and ongoing client lifecycle events.

Clarient Entity Hub is owned and operated by Clarient Global LLC, a company jointly owned by DTCC and other founders, BNY Mellon, Barclays, Credit Suisse, Goldman Sachs, JPMorgan Chase and State Street. DTCC’s Matthew Stauffer will serve as the company’s CEO.

Clarient Entity Hub, which is expected to launch later this year, will enable industry participants worldwide to more effectively manage and navigate evolving internal risk management requirements, including Know Your Customer (KYC), Foreign Account Tax Compliance Act (FATCA) and other client data and documentation challenges.

With the service, investment managers, hedge funds, and corporates can centrally upload, validate, permission, distribute and securely store entity level information, documentation and hierarchy data through an intuitive interface, enabling complete transparency and control of information access. By automating the collection and validation of client data and documentation, including master level documents, through a highly controlled, auditable, industry utility, Clarient Entity Hub will bring financial industry clients increased efficiency and enhanced control over their data and its communication, while mitigating operational risk and reducing cost for the industry.

Clarient Entity Hub is the only solution able to leverage current, compliant reference data from DTCC’s established set of client reference data services including:

  • Avox, the industry’s premier legal entity data validation and monitoring service with validated data for over 1.5 million legal entities.
  • Omgeo ALERTSM, the industry’s Standing Settlement Instruction (SSI) Utility and the largest global database for SSIs.

In a future release, Clarient Entity Hub will also provide clients the ability to obtain a legal entity identifier (LEI), if necessary, from the DTCC’s Global Markets Entity Identifier (GMEI) utility service. With more than 135,000 globally accepted registered entities from over 140 countries, the GMEI utility maintains approximately 50% global market share, making it the largest pre- Local Operating Unit (LOU) within the Global LEI System (GLEIS).

Additionally, Clarient Entity Hub will be fully integrated with the DTCC Client Reference Data and Enrichment (CRDE) service, a portal to collect counterparty information required for delegated derivative trade reporting in support of EMIR reporting requirements.

“With the founding members’ collaboration on the service features and functionality, users can expect a state-of-the art technology platform and a client experience designed specifically for the unique needs of the industry,” said Stauffer.

“We are pleased to be a founder of Clarient and to work together with DTCC, our co-founders and other industry participants as Clarient Entity Hub is built and delivered,” stated David Crawford, Executive Vice President and Head of State Street's Global Transaction Banking Services. “The client on-boarding process has long been a challenge for market participants worldwide, and we look forward to a collaboration that will enable us to bring the optimal solution to the industry.”

 

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