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Jan 09, 2018 • Press Releases

DTCC Exception Manager Launched to Publish, Manage and Communicate Exceptions Throughout the Trade Lifecycle

Industry solution addresses major industry pain point and acts as a key enabler for reducing cost and risk in the settlement process

New York/London/Hong Kong/Singapore/Sydney, January 9, 2018 – The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced the launch of DTCC Exception Manager, the latest addition to its Institutional Trade Processing product suite. DTCC Exception Manager enables market participants to publish, manage and communicate exceptions* throughout the trade lifecycle, and supports all securities transactions globally.

DTCC Exception Manager solves a major challenge for financial firms by establishing a central online industry platform that provides a single view of all post-trade exceptions, analytics to help identify the root cause of operational breaks and the ability to solve problems at the source, such as incorrect standing settlement instructions (SSIs). The service also provides a configurable risk dashboard to measure and chart exceptions based on risk criteria with drill-down capabilities and customizable views, as well as efficient work assignment and collaboration capabilities, enabling timely resolution between trade support and pre-settlement groups with secure communications functionality, audit trails and reports.

In a recent survey** 78% of respondents pointed to missing or incomplete SSIs as the biggest pain point affecting post-trade processes while 80% felt that faster resolution of exceptions is a key factor in a T+2 settlement cycle environment. DTCC developed the exception and workflow management service at the request of client feedback for an industry platform to aggregate and better manage these events across multiple parties. Policy-makers and regulators are increasingly focused on improving settlement efficiency. It is estimated that a global failure rate of 2% translates into costs and losses up to $3bn. In Europe, the CSD Regulation contains provisions within its Settlement Discipline Regime to impose financial penalties and mandate automatic buy-in procedures to address this issue.

“Post-trade exception processing often creates operational risk and a significant amount of inefficiency for all parties to a trade,” said Matthew Stauffer, Managing Director and Head of Institutional Trade Processing at DTCC. “Trade data needs to be consumed and processed from many disparate systems, including matching engines, trading counterparties, settlement entities and market infrastructure providers – and the related communications, which are predominantly emails, are overwhelming, cumbersome to manage and introduce risk.”

DTCC Exception Manager was created for all parties involved in the trade lifecycle, including buy-side firms, outsourcers, broker/dealers, custodians, prime brokers, clearing brokers and other settlement agents. Matthew Stauffer added, “It centralizes and standardizes exception processing to enable faster resolution, delivers a significant reduction in the number of exceptions and supports exceptions in trade validation and settlement processing.”

About DTCC

With 45 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 16 countries, DTCC, through its subsidiaries, automates, centralizes and standardizes the processing of financial transactions, mitigating risk, increasing transparency and driving efficiency for thousands of broker/dealers, custodian banks and asset managers. Industry owned and 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 financial markets. In 2016, DTCC’s subsidiaries processed securities transactions valued at more than U.S. $1.5 quadrillion. Its depository provides custody and asset servicing for securities issues from over 130 countries and territories valued at U.S. $49.2 trillion. DTCC’s Global Trade Repository maintains approximately 40 million open OTC positions per week and processes over one billion messages per month. To learn more, visit us at or connect with us on LinkedInTwitterYouTube and Facebook.

Adam Honeysett-Watts, DTCC

[email protected]

+44 (0)20 3116 2409

Hod Klein, Vested, US
+1 917 765 8720
[email protected]

Harriet Leatherbarrow, Greentarget, Europe
+44 (0)20 7324 5483
[email protected]

Yuri van der Leest, Teneo Strategy, Asia
+852 3655 0504
[email protected]

Emma Cullen-Ward, OneProfile Comms, Australia
+61 2 8915 9900
[email protected]

Editor Notes

*An ‘exception’ refers to a transaction that requires user attention, to ensure the transaction settles successfully.

**DTCC conducted a survey in mid-2017 among 364 senior buy- and sell-side professionals located in the Americas, EMEA, APAC, Japan and Australia.