Transforming settlement management for collateral 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 collateral call processing.
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.
No more error-prone manual processes
Benefit from automating cash and security collateral settlement messaging between trading counterparties and their paying agents and custodians for both segregated and unsegregated agreements.
Seamlessly connects to the capabilities you need
After your collateral calls are matched, MTU automatically connects to ALERT (the industry’s SSI utility) to enrich the match with golden sourced collateral settlement instruction, and the SWIFT messaging network to deliver an unparalleled straight-through processing solution.
Eliminate fragmented workflows
Manage segregated third-party custodian, and segregated tri-party and bilateral agreements in one place.
Don’t "assume" settlement – get notified!
Status updates (confirmations) are delivered to both trading parties enabling real-time collateral booking in place of assumed settlement.
Whatever suits your fancy… SWIFT, MQ, MarginSphere…
You can choose how you receive status updates from MTU. Select from SWIFT, MQ channel, AcadiaSoft’s MarginSphere (API or GUI) or the MTU GUI.
We’re settlement automation, not a collateral management vendor
We’ve automated the settlement management process for you – we are not a collateral management vendor. We automate the settlement process after trades are matched!
How It Works
After margin calls are matched in AcadiaSoft, MTU enriches the match with automated settlement instructions via 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.
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 AcadiaSoft. Then a pledge accept message is sent from AcadiaSoft to MTU where it:
- Validates the collateral message from the matching source
- Enriches the SWIFT-formatted message with ALERT® collateral settlement instructions and notifies the parties responsible for settlement
- Provides status updates including exceptions and rejections
- Delivers settlement confirmation to counterparties
For More Information
Learn more about how to streamline and standardize your collateral management.