Industry event outlines multi-year transformation initiative designed to enhance adaptability, security and efficiency
In an industry landscape increasingly defined by technological advancement and evolving regulatory requirements, DTCC is undertaking one of the most comprehensive efforts in its history, a multi-year transformation that will reshape how clearing and settlement services operate for years to come.
Speaking at the October 8th session of The Future of Clearing & Settlement, DTCC executives outlined an ambitious vision for moving away from legacy mainframe infrastructure toward a distributed architecture that promises enhanced platform resilience, improved security and greater operational efficiency. The initiative, which has been carefully designed in partnership with the industry, represents a fundamental reimagining of how market participants interact with critical post-trade infrastructure.
Learn more about DTCC's transformation program
"Our plans are based on client feedback we've received from advisory committee meetings, multiple working groups, and as we constantly solicit client feedback," said Bob Stewart, DTCC Executive Director.
This collaborative approach underscores a key principle driving the effort: DTCC is not simply upgrading technology. It's partnering with clients to build the infrastructure the industry needs for the future.
A Vision Rooted in Client Needs
The innovation journey addresses challenges that market participants have increasingly faced: the need for improved data transparency, faster responses to regulatory changes, enhanced testing capabilities and platforms that can evolve alongside market innovation. By transitioning to distributed infrastructure, DTCC aims to deliver on all these fronts while maintaining the reliability and stability that clients depend on.
Central to the transformation is the adoption of ISO 20022 messaging standards on distributed connections, representing a significant step toward global harmonization of financial messaging. This shift, combined with simplified workflows and enhanced processing capabilities, will provide clients with more flexibility and control over their operations. The initiative also includes improvements to recycled processing, the decommissioning of reclaim matching and automated processing of partial deliveries, changes designed to streamline operations and reduce operational friction.
For clearing services, the benefits are already materializing.
DTCC has successfully removed one day from Automated Customer Account Transfer Service (ACATS) processing, directly improving liquidity management for firms. Looking ahead, the roadmap includes extending NSCC clearing hours to 24x5 operations and enhancing the clearing process for ETFs with options components managed between NSCC and The Options Clearing Corp. These enhancements are designed to maximize liquidity and minimize counterparty risk, fundamental objectives that benefit the entire market ecosystem.
Related: ACATS Transformation Is Underway
A Phased Approach to Minimize Risk
Recognizing the complexity and criticality of clearing and settlement infrastructure, DTCC has structured the effort as a carefully phased rollout. Settlement interfaces connectivity testing will begin in the first quarter of 2026, with ISO 20022 implementation commencing simultaneously and a production launch targeted for the fourth quarter of 2027. This extended timeline reflects DTCC's commitment to ensuring clients have adequate time to prepare, test, and validate their systems.
DTCC’s CNS®, a continuous net settlement system, transformation follows a similar measured approach. Fully-Paid-For (FPF) and CNS® Level 2 exemptions have already been decommissioned, and connectivity engagement for the PSE environment will begin in the first quarter of 2026. Functional client testing will follow in the second quarter, leading to a modernized production launch in the fourth quarter of 2026. Importantly, clients can continue testing against the legacy CNS® system until the new version goes live, providing continuity during the transition.
Client connectivity represents another critical component of the transformation. DTCC is upgrading connectivity options to support distributed connections, with Secure File Transfer Protocol (SFTP) becoming the sole file transfer protocol on the new distributed platform. This change will require new connectivity setups, including new nodes for SFTP and updated data delivery subscriptions. To mitigate transition risks, legacy formats will be supported through distributed platforms for a limited period, allowing systems to run in parallel during the initial launch phase.
Empowering Clients with Enhanced Analytics
Beyond infrastructure transformation, DTCC's strategy encompasses a comprehensive data evolution designed to provide enriched transparency reporting and enhanced analytics. By consolidating all equity clearing and transaction data into a centralized cloud data hub utilizing Snowflake, DTCC is creating the foundation for next generation reporting capabilities.
A new interface within the MyDTCC portal will enable clients to view, review and download new reports with unprecedented flexibility. The phasing out of legacy formats will bring consistency across DTCC's platforms, while the new user interface will offer flexible report scheduling, access to historical reports and the ability to view data for one year or more.
The vision extends beyond simply providing data. DTCC aims to put more information into client hands in real time, enabling robust search and query capabilities through a single interface. Clients will be able to view anonymized equity analytics to assess their performance and benchmark against industry peers, scheduling reports based on custom queries while utilizing their existing infrastructure. This democratization of data represents a significant step forward in market transparency and operational intelligence.
Comprehensive Support Every Step of the Way
Understanding that technological transformation of this magnitude requires more than technical specifications and timelines, DTCC has assembled a dedicated support infrastructure to guide clients through the journey. The SIFMU integration team serves as the primary contact for operational readiness, providing expertise in onboarding, lifecycle management, product migrations and post-production support.
Clients will have access to dedicated consultants who will manage the initiative on their behalf, coordinating with all internal DTCC stakeholders including product and technology teams.
As the industry prepares for this transformation, DTCC's message is clear: the time to prepare is now. This is not merely a technological upgrade but a partnership between DTCC and its clients to build the infrastructure that will support market innovation for decades to come.