The Depository Trust Company (DTC) – a subsidiary of The Depository Trust & Clearing Corporation (DTCC) – completed the final phase of the Settlement Matching initiative enabling clients to reduce risk and boost intraday settlement finality. The final phase of the initiative involved having all affirmed institutional deliveries (ID) subject to receiver approval prior to settlement.
Settlement Matching allows receiving Participants to maintain control over which transactions to accept, while removing the potential credit and liquidity risk previously associated with same-day reclaims. The completed initiative allows for clients to resolve discrepancies intraday rather than on a next-day process by allowing the receiver to approve the transaction prior to settlement. The four phase initiative, which began in 2013, removed approximately $525 billion of risk from the DTC settlement system including DTC, its Participants or the larger industry as a whole.
For more information on DTCC’s Settlement Matching initiative, visit:
DTCC Settlement Matching
Update to DTCC's Settlement Matching Initiative
Introduction of DTCC’s Settlement Matching Strikes $525 Billion of Risk and Promotes Certainty in Settlement Processing