Mar 08, 2013
• White Papers
Increasing Certainty and Promoting Intraday Settlement Finality: A Service Description for Settlement Matching
The Depository Trust & Clearing Corporation (DTCC), through its subsidiary, The Depository Trust Company
(DTC), will institute Settlement Matching for DTCC Participants beginning in 2013, bringing significant
enhancements to the settlement process and further reducing risk for DTCC and its Participants.
Settlement Matching will be introduced in a manner that promotes institutional trade affirmation and encourages
straight-through processing (STP) by implementing a transaction matching component into DTCC’s existing
settlement processes. DTCC will leverage existing infrastructure to provide Participants with the ability to
authorize or match transactions prior to settlement. This will eliminate the need for reclamation transactions
and the accompanying credit and liquidity risk, a significant step in risk mitigation for the industry.
In addition to the inherent credit and liquidity risks, a number of other drawbacks come with the current
settlement process, including the inability to credit underlying customer accounts without risk of reversal, limited
transparency of erroneous or disputed transactions, and costly manual intervention. Also, most reclaims
are processed primarily late in the day making it difficult for the original deliverer to take corrective action or
use the securities for other funding opportunities.
Download the White Paper: Increasing Certainty and Promoting Intraday Settlement Finality: A Service Description for Settlement Matching