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Re-imagining Post-Trade

DTCC Institutional Trade Processing (ITP) is an open, post-trade infrastructure that eliminates all redundancies and manual processing across asset classes – to create a place where you can manage the entire trade lifecycle, from post-execution to settlement, from one platform.

Explore our infographic below and read our whitepaper, Re-Imagining Post-Trade: No-Touch Processing Within Reach to learn more about how we enable our clients to achieve an optimal, no-touch processing workflow.

Optimal No-touch Processing Workflow

Optimal No-Touch Processing Workflow

Optimal No-Touch Processing Workflow

With no-touch processing, reference data is centralized, and enrichment occurs just-in-time from golden data sources facilitating efficient downstream processes and eliminating the need for local data stores. Parties agree on trade economics and SSIs on trade date, resulting in an authoritative trade record.

All parties are notified with the same authoritative instruction and are tracking and resolving exceptions to ensure settlement finality. In addition to capturing all exceptions and consolidating settlements management, a one integrated platform will provide operational data, analytics and reporting bringing transparency into the root cause of common exceptions.


Central User Interface

To support the ITP strategy, all market participants will have access to a single interface and a central portal where they can view and manage the entire lifecycle from post-execution to settlement. ITP is also adopting standards and best practices for its messaging interfaces with an open application programing interface (API) architecture to provide flexible integration options.


The Establishment of an Authoritative Trade Record: Enrichment

Within the Enrichment step, trades are automatically enriched from accurate and timely data sources. The provision of standing settlement instructions (SSIs) from the ALERT® platform and legal entity identifiers (LEIs) from the GMEI utility removes manual intervention and improves efficiency which can reduce the risk of settlement failure and is one of the key enablers to achieving a no-touch workflow.

Through ALERT, clients have access to the world’s largest database of golden source account and standing settlement instructions, including support for equity, fixed income, cash, derivatives and collateral SSIs, which can be managed directly by Global Custodians through its Global Custodian Direct workflow. This access allows clients to minimize fails by enriching their trades automatically with the most accurate SSIs. Additionally, with ALERT Key Auto Select (AKAS), clients can lock in their preferred place of settlement (PSET) on trade date through a rules-based service that will automatically select the correct PSET and SSI.

The GMEI utility is ITP’s legal entity identifier (LEI) solution that was designed to create and apply a single, universal standard identifier to any organization or firm involved in a financial transaction globally. The ALERT platform contains functionality enabling users to populate their LEI, validate it against GMEI records, share it with their counterparties and enrich this information on their authoritative trade records.

Learn more about enabling our current Enrichment capabilities:


The Establishment of an Authoritative Trade Record: Agreement

ITP’s Central Trade Manager (CTM™) is our strategic platform for the central matching of cross-border and domestic transactions automating the trade confirmation process across multiple asset classes, such as equities, fixed income, and repurchase agreements (repos). CTM allows for seamless connectivity from trade execution to instruction, including direct connectivity via FIX from front office to middle office trade processing, as well as via the SWIFT network to a full community of custodian banks. In CTM, parties agree on the economics and SSIs on trade date resulting in an authoritative trade record.

Learn more about ITP’s current ways of enabling trade agreement:


Notification and
Settlements Management

ITP’s Settlements Management will prove a platform for the processing of settlement transaction workflows. This includes supporting connectivity from agreement platforms and external parties, notification and instruction of transactions to post trade participants and interested parties, and the tracking of settlement statuses until receipt or delivery is confirmed. It will service multiple asset classes and allows for seamless connectivity through the settlement lifecycle.

ITP’s settlement notification feature enables clients to achieve straight through processing of trades through the automatic creation and transmission of settlement messages in industry standard formats. This provides both formal instruction of delivery and receipt of financial securities, as well as the communication of transaction information for fund administration, NAV calculation, reconciliation, and reporting purposes. It will also give clients a view into settlement confirmation with accurate settlement tracking of DTCC ITP workflows enabling clients with complete transparency through the post trade lifecycle.

For any collateral calls, ITP’s Margin Transit Utility (MTU) service will send real-time notification to confirm the settlement. Status updates (confirmations) are delivered to both trading parties enabling real-time collateral booking in place of assumed settlement, real-time confirmation of settlement, and end-of-day position reports in a standardized format through ITP’s MTU platform.

Learn more about ITP’s current notification and settlements management capabilities:


Data Analytics

ITP Data Analytics delivers powerful analytical products that enables agents, broker/dealers, and investment managers to measure and compare operational performance against that of their counterparties and industry peers.

It does this through enabling firms to access timely business intelligence through providing operational performance metrics along with tools to customize views of this information and compare it to peer and industry performance. Using ITP Data Analytics, firms can monitor operational performance across all asset classes and compare it to industry averages. Firms can also view individual counterparty timeliness and efficiency. ITP Data Analytics is comprised of multiple offerings within two broad categories—internal and market—that can be used in combination or individually. The products can be organized at the aggregate firm level, regionally or by identifier, and can be customized by market, financial instrument type, location, and more.

Learn more about ITP’s current data analytics capabilities through the ITP Data Analytics service:


Exception Management

The DTCC Exception Manager service gives clients the ability to publish, manage and communicate on exceptions throughout the trade lifecycle based on accurate source data, aligning to operational and regulatory requirements including the Central Securities Depositories Regulation (CSDR) and MiFID. By centralizing and standardizing exception processing across a common shared platform and providing detailed post-trade analytics, it enables faster resolution and delivers a significant reduction in the number of future exceptions. For trades that do fail, the platform will help to facilitate management with CSDR-specific data points, tracking information and buy-in risk indicators.

Learn more about DTCC Exception Manager:


Authoritative Trade Record

The establishment of an authoritative trade record involves two steps, enrichment and agreement.