Matt Stauffer, DTCC Managing Director and Head of Institutional Trade Processing
DTCC’s Institutional Trade Processing (ITP) solutions currently provide 6,000+ clients across 52 markets around the world with instant access to counterparties in established markets, as well as growth markets, driving best practices, promoting effective communications and accelerating their post-trade processes. Many of our clients leverage FIX, along with our ITP solutions to maintain their preferred message protocol while also enabling true no-touch processing. Here are four key reasons to consider DTCC’s ITP solutions when evaluating your technology solution...
Reason #1: Enabling an Optimal No Touch Process
By using the ITP FIX interface, clients who prefer FIX connectivity can maintain that protocol and still enjoy the benefits of ITPs seamless front-to-back integration. ITP’s service provides true no-touch processing and the eventual elimination of those trade and settlement exceptions not tied to cash/inventory issues.
With CTMTM, counterparties use the same platform for allocation and matching with complete transparency over any matching differences and exceptions, driving trade date match rates to 95% or higher. Once a trade is matched, only CTM can automatically enrich it with the most up-to-date SSIs and place of settlement (PSET) from the ALERT® SSI Utility. This authoritative trade record is created, and all settlement parties and the depository are notified with the same authoritative instruction to ensure settlement finality.
Utilizing ITP to optimize FIX transaction flows means there is no need to manage and maintain a costly fragmented FIX infrastructure or pay FIX networks to manage multiple FIX allocation interfaces, variations, tags and extensions.
Reason #2: Enabling a Global Community
DTCC ITP solutions currently enable 6,000+ clients across 52 markets around the world to instantly access counterparties in established markets, as well as growth markets, driving best practices, promoting effective communications and accelerating their post-trade processes.
CTM is the leading post-trade workflow engine, and as a global solution for all segments and markets it supports extensive connectivity options, including FIX. This enables ITP clients to interface with counterparties across the landscape, whether those counterparts are using a web-based user interface, XML, file-based or FIX connections.
Reason #3: Value for Money
When adding FIX to your post-trade operations, it is important to understand total cost of ownership inclusive of FIX engines, connectivity costs, in-house maintenance and version/change management - and not only the marginal cost of additional messages.
Leveraging FIX messaging to connect to CTM allows clients to enjoy the benefits of community connectivity, premier FIX interface support and best practice management with your preferred connectivity option. In addition, ITP’s service provides true no-touch processing and the eventual elimination of those trade and settlement exceptions not tied to cash/inventory issues, saving you from costly fines when the Central Securities Depositories Regulation (CSDR) comes into effect.
As ITP advances our strategy to consolidate interfaces, simplify workflows and drive best practice adoption industry-wide, we have harmonized pricing for OASYS and CTM Investment Manager clients to encourage our community to move their US volume from OASYS to our enhanced CTM platform.
Reason #4: World-class support provided by DTCC
It’s important to understand what additional support is provided by DTCC that FIX, as a messaging protocol alone, does not provide:
- 24/6, multi-lingual Technical Support for functionality, connectivity and all other product-related issues
- A global Relationship Management team providing local relationship support and market expertise
- Support for firms’ legal and regulatory compliance obligations including 10(b)-10 compliance in the U.S., OFAC screening, etc.
- Comprehensive cyber-resiliency and business continuity programs which adhere to DTCC’s strict standards driven by the firm’s status as a Systemically Important Financial Market Utility (SIFMU) and a provider of Regulation SCI systems in the U.S.
FIX is overseen by a volunteer organization, not a solutions provider. Platform vendors may provide support for their solutions but may not adhere to the same revel of rigor on security, resiliency and reliability that is required for SIFMU organizations.
CTM’s FIX interface enables clients to maintain that connectivity option and benefit from the extensive support and oversight provided by DTCC within CTM.
For more information on leveraging ITP to enable no touch processing with FIX please contact us.
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