Margin Transit Utility (MTU)

Transforming settlement management for margin calls – a new, more efficient tool for simplifying the margining process.

DTCC’s Margin Transit Utility (MTU) was created to improve settlement efficiency and reduce operational complexity and risk for margin call processing.

• About

  MTU was created to improve settlement efficiency and reduce operational complexity and risk for collateral call processing. By leveraging automation, MTU allows you to efficiently validate, enrich, settle, report and monitor matched collateral calls globally while easily connecting to and sharing information with multiple counterparties.

  The service helps reduce operational risk by standardizing and automating the margin process from the point of agreement through to settlement. It also helps manage credit and liquidity risk by accelerating the distribution of settlement data to the relevant party.

  With the incorporation of MTU into our Institutional Trade Processing (ITP) suite of services, we’ve broadened the types of enrichment, notification and settlement management capabilities we offer – additional asset classes and workflows– to provide more holistic post-trade lifecycle support under one service umbrella.

• Benefits

  • No more error-prone manual processes
    Automated cash and security collateral settlement messaging.

  • Seamlessly connects to the capabilities you need
    Automatically connect to ALERT® to enrich the match with standing settlement instructions and SWIFT.

  • Eliminate fragmented workflows
    Automated messaging to bilateral counterparties and their custodians, as well as to triparty agents. No more faxes or portals to navigate.

  • Don’t "assume" settlement – get notified!
    Settlement confirmation is delivered to both trading parties enabling real-time collateral booking.

  • Choose how you receive status updates from MTU.
    Select from SWIFT, MQ channel, Acadia’s Margin Manager (API or GUI), or the MTU GUI.

• How It Works

  After margin calls are matched in Acadia’s Margin Manager, MTU enriches the match with automated settlement instructions via DTCC’s ALERT — the industry’s SSI utility — and provides notification to confirm the settlement in real-time. Additionally, MTU provides real-time confirmation of settlement and end-of-day position reports in a standardized format. It also includes connectivity to a number of complementary collateral offerings, including Adenza (Calypso), Murex and VERMEG (Colline).
  
  Collateral Management Ecosystem: The collateral settlement process begins when both counterparties agree on the margin call amount and either the counterparties or the triparty provider allocate the collateral. In a bilateral or third-party arrangement, the counterparties agree to the margin amount and affirm the collateral to be posted/received via Margin Manager. Then a pledge accept message is sent from Margin Manager to MTU.
  
  

• For More Information

  Learn more about how to streamline and standardize your collateral management.