DTC's Inventory Management System (IMS) is a service that allows participants to centrally manage their own settlements as a way of furthering straight-through processing.

Overview

DTC's Inventory Management System (IMS) is a service that allows participants to centrally manage their own settlements as a way of furthering straight-through processing. IMS offers features that allow participants to have greater control over the order and timing of the submission and recycling of their deliveries into the processing system.

Who Can Use the Service

When the industry started working towards a straight-through processing environment, many participants recognized the need for increased inventory control in order for their systems to be responsive in a shortened trade cycle. To control industry costs, and address this market-wide need, DTC developed IMS for its participants. This eliminated the need for each participant to build and fund its own system. IMS allows a participant to choose how it wants to authorize its deliveries.

Benefits

• Greater control over night cycle deliveries through expanded authorization capabilities and choices
• Ability to re-introduce dropped transactions
• Ability to store future deliveries, reducing cost for storing deliveries
• Greater participant control over the order and timing of deliveries
• The ability to route some participant entered transactions to IMS for authorization

How the Service Works

IMS offers various options for managing the processing of transactions, including several inquiry and update options. Some of the inquiry options include:

• Total Recap by Transaction Type allows customers to view summaries of trades by their current status. This screen provides summaries by transaction type, and within transaction type, by asset class
• Browse by Delivery Date allows customers to search for and view transaction information by settlement date
• Transaction Authorization Inquiry allows customers to view information for authorized or exempted trades
• ID Net Transaction Inquiry provides brokers with the ability to view their transactions processed via the optional ID Net service

Update Options Include

• Transaction Authorization Update allows participants to authorize or exempt their institutional, Continuous Net Settlement (CNS), Night DOs, Balance Orders, participant entered transactions and automated ACATS transactions for processing into the settlement system either entirely or on a trade-for-trade basis. Transactions can also be cancelled, except for CNS trades. Drop Profile Updates – Participants use Drop Profile updates to reintroduce pends that have dropped. Participants can change the settings in their "drop profile" according to asset class, effective date and type of transaction. (This Profile does not apply to CNS transactions.)

For More Information

Contact Relationship Management at (888) 382-2721 to learn how IMS can benefit your firm. .