New industry solution, Clarient Entity Hub, to provide centralized services for all client data and documents needed to satisfy internal on-boarding and help firms meet broader related regulatory requirements including Know Your Customer (KYC), Foreign Account Tax Compliance Act (FATCA), European Market Infrastructure Regulation (EMIR) and Wall Street Reform and Consumer Protection Act (Dodd-Frank)
Six founder banks and DTCC to deliver a comprehensive solution, combining innovative new technology with existing DTCC capabilities in the client reference data space
New York/London/Hong Kong/Singapore, 29 July, 2014 – Together with six founder banks, The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced the establishment of Clarient Entity Hub, a financial industry solution designed to provide increased controls, standardization and transparency during the client on-boarding process and ongoing client lifecycle events.
Clarient Entity Hub is owned and operated by Clarient Global LLC, a new DTCC company founded with BNY Mellon, Barclays, Credit Suisse, Goldman Sachs, JPMorgan Chase and State Street. DTCC’s Matthew Stauffer will serve as the company’s CEO. The founder banks and DTCC have collaborated in the design and development of the utility.
Clarient Entity Hub will enable industry participants worldwide to better cope with evolving internal risk management requirements and Know Your Customer (KYC), Foreign Account Tax Compliance Act (FATCA) and other client data and documentation challenges. With the service, investment managers, hedge funds, and corporates can centrally upload, validate, permission, distribute, and securely store entity level information, documentation and hierarchy data through an intuitive interface, enabling complete transparency and control of information access. By standardizing, centralizing and automating the collection and validation of client data and documentation, including master level documents, in a highly controlled, auditable, industry utility, Clarient Entity Hub will bring financial industry customers increased efficiency and enhanced control over their data and its communication, while mitigating operational risk and reducing cost for all.
Clarient Entity Hub is the only solution able to leverage current, compliant reference data from DTCC’s established set of client reference data services, including Avox, the industry’s premier legal entity data validation and monitoring service with validated data for over 1.5 million legal entities, and Omgeo ALERTSM, the industry’s Standing Settlement Instruction (SSI) Utility and the largest global database for SSIs. Clarient Entity Hub will also be fully integrated with the DTCC Client Reference Data and Enrichment (CRDE) service, a portal to collect counterparty information required for delegated derivative trade reporting in support of EMIR reporting requirements.
“We are pleased to be announcing this initiative with six of the world’s leading banks to bring this utility to market,” stated Michael C. Bodson, President and CEO of DTCC. “As the only user owned and governed client data and documentation utility in the world, we’ll work to ensure that the Clarient Entity Hub fully meets the evolving needs of the entire industry, today and in the years to come.”
“Clarient Entity Hub is a unique offering that we’ve developed in close collaboration with our founder banks and over ten of the world’s top asset managers and hedge funds, who have provided significant input into the overall user experience as part of the Clarient User Partner Program,” said Matthew Stauffer, CEO of Clarient Global LLC. “We look forward to our launch later this year.”
“We are pleased to be a founder of Clarient and to work together with DTCC, our co-founders and other industry participants as Clarient Entity Hub is built and delivered,” stated David Crawford, Executive Vice President and Head of State Street's Global Transaction Banking Services. “The client on-boarding process has long been a challenge for market participants worldwide, and we look forward to a collaboration that will enable us to bring the optimal solution to the industry.”
With over 40 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry. From operating facilities, data centers and offices in 15 countries, DTCC, through its subsidiaries, automates, centralizes, and standardizes the post-trade processing of financial transactions, mitigating risk, increasing transparency and driving efficiency for thousands of broker/dealers, custodian banks and asset managers worldwide. User owned and industry governed, the firm simplifies the complexities of clearing, settlement, asset servicing, data management and information services across asset classes, bringing increased security and soundness to the financial markets. In 2013, DTCC’s subsidiaries processed securities transactions valued at approximately US$1.6 quadrillion. Its depository provides custody and asset servicing for securities issues from 139 countries and territories valued at US$43 trillion. DTCC’s global trade repository processes tens of millions of submissions per week. To learn more, please visit www.dtcc.com or follow us on Twitter @The_DTCC.