The ever-evolving U.S. capital markets landscape continues to put pressure on firms to navigate the impact of rapid innovation and technological advancements.
Sponsored by S&P Global, Matt Schill, DTCC Director, Asset Services Product Management, Michael O’Brien, Executive Director, Announcement Capture, J.P. Morgan, Pauline Remhof, Director, Corporate Actions, Charles Schwab & Co., Inc., and Bidhu Rusia, Director, Product Management, SPGMI. The panel was moderated by Madhu Ramu, Managing Director, Head of Data and Product, SPGMI.
Watch the full panel discussion and read highlights about DTCC’s perspectives below:
Navigating the Speed of Change
- All firms want to harness the benefits of innovative technologies, but the challenge is the investment - time, capital and ideas - to develop and understand the solution to today’s challenges.
- With technology moving so fast, the challenge is to define what is needed, not just rush just to do something.
“Before modernizing technology, we took a broad look at security reference data to understand how we can pull all the reference data together to modernize the business and leverage artificial intelligence and predicative analytic on a broader scale.” – Matt Schill, DTCC
T+1 Implementation
- The U.S. implementation date is set for Tuesday, May 28, 2024, while Argentina, Canada, Mexico and Peru will move forward with implementation a day earlier on May 27, 2024.
- Compared to the industry move to a T+2 settlement cycle in 2017, the migration to T+1 there is a much heavier lift. DTCC has been running industry wide testing cycles, giving everyone the ability to test to ensure everyone is aware and ready for the switch.
“From a readiness perspective, DTCC held 15 tabletops with many of our largest clients across ITP, NSCC and DTC in preparation for T+1 to look at different outage scenarios, providing insight and confidence that customers were preparing and had the ability to pivot as needed.” – Matt Schill, DTCC
Learn more at UST1.org.
Defining T+1 Success
- DTCC is not tracking fails right away, instead monitoring affirmation rates for ITP, with a goal of 90%–99%.
- DTCC will also be checking NSCC volumes. Currently there are 197 million actual trades through NSCC and the rate being netted should stay around the goal of 90%–99%. Once historical thresholds are in place, fails will be examined at some point in time post the T+1 migration.
“If fail rates rise, so will claims. DTCC is going to marketing ClaimConnect 2.0 to encourage firms to use it as a way to help get ahead of fail corporate action entitlement management, to highlight API automation and auto-matching to input, match and settle a claim in near real time.” - Matt Schill, DTCC
Read the latest on the industry’s affirmation progress.
Progress and advantages of DTCC’s modernization journey
- DTCC is looking at widespread Core Clearance and Settlement modernization—particularly as the industry looks toward accelerating the settlement cycles past T+1.
- DTCC is focusing on advancing its asset services businesses to best align them to the security lifecycle.
“Looking ahead, DTCC has created a technology, research and innovation team to start testing ways to safely integrate newer technologies, like GenAI, into our core businesses.” – Matt Schill, DTCC
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