DTCC announced that the first client, Putnam Investments, has successfully begun using FICC’s Electronic Pool Notification (EPN) service through Application Programming Interface (API) technology. The API allows a “low touch” and lightweight alternative option for firms to access EPN, without bearing the technology lift of a full Message Queue (MQ) channel installation.
Related: Four Things to Know About DTCC's API Marketplace
Most mortgage-backed securities trades submitted to FICC are traded on a “to-be-announced” (TBA) basis. EPN is the industry standard communication tool used by clients including broker/dealers, commercial banks, investment companies, trust companies, and mutual funds to inform buyers what pools of mortgages will be delivered to satisfy those trades. With declining interest rates, volumes in MBSD have increased, leading to more activity in EPN.
Rewrite of EPN
Recognizing that APIs are playing an increasingly important role in the future of financial services technology, DTCC upgraded and rewrote the EPN platform last year to enable it to be offered within the DTCC API Marketplace, said Nick Botta, Executive Director, FICC Product Management.
“Clients are increasingly turning to APIs, which give them better flexibility to leverage DTCC’s best-in-class technology to suit their needs,” said Botta. “With REST API, FICC is offering clients the ability to process EPN messages, check the status in each stage and get the outbound messages.”
The EPN platform has also been upgraded to support DTCC’s Message Queue (MQ) technology, enabling clients to communicate directly with DTCC within a real-time interface. The MQ technology is available for cross-platform adoption, allowing clients to utilize a common interface across DTCC services including EPN and the Real-Time Trade Matching Service (RTTM), an electronic platform for collecting and matching fixed income securities data.
“DTCC worked closely with our clients to develop the new EPN platform to help reduce risk for the mortgage-backed securities industry by offering an improved user experience that supports faster workflows and more efficient communication,” said Vance Howard, Director, MBSD Product Management.
About DTCC’s API Marketplace
DTCC’s Marketplace is an online “App Store,” allowing direct, secured and streamlined programmatic access to DTCC processing functionality, and includes comprehensive documentation and training materials to help developers use the APIs. The Marketplace is organized so internal and external clients can self-select products and access consistent guidance documentation, providing support through the entire API adoption process.
To learn more about the EPN API, please visit: https://developer.dtcc.com/.