New York/London/Hong Kong/Singapore/Sydney, 12 October 2021 ‒ The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced that the community leveraging DTCC’s Central Trade Manager (CTM) service for U.S. domestic trade matching has grown to over 1,800 firms, as organizations further consolidate global post-trade flows on a single platform. With this adoption, 99% of U.S. trade flow volumes on the legacy DTCC OASYS service have migrated or are in the process of migrating to CTM.
CTM, DTCC’s platform for the central matching of cross-border and domestic transactions, automates the trade confirmation process across multiple asset classes, including equities, fixed income, repurchase agreements (repos) and listed options. The service enables users to take advantage of configurable matching rules, enrichment from DTCC’s ALERT database of 11.5 million standing settlement and account instructions, SWIFT messaging and, for U.S. trades, direct integration with DTC settlement. As a result of this automation, firms are now able to manage their entire post-trade matching process on a single best practice solution, across asset classes and jurisdictions, and benefit from an average 95% same day matching rate.
Adopting a single global central matching platform further supports U.S. efforts to accelerate the settlement cycle. CTM’s Match to Instruct (M2I) workflow automatically triggers trade affirmation and delivery to DTC for settlement when a trade match between an Investment Manager and Executing Broker occurs, eliminating the need for either party to take further action. Clients using this workflow achieve a near 100% affirmation rate by 9 PM on trade date, demonstrating that the adoption of the CTM M2I workflow is a critical enabler to achieving T+1 settlement. This automation can also reduce certain post-trade processing costs for cash securities at large broker-dealer firms by 20-25%, according to DTCC’s recent survey of nine of the world’s leading broker-dealer firms.
Reducing Exceptions & Fails
Additionally, the higher affirmation rates achieved with the CTM central matching service results in a reduction of trade exceptions (i.e. Don’t Know, or DK transactions), fails and financing charges. DTCC analysis has shown that unaffirmed trades are 54 times more likely to result in a trade not being authorized by the counterparty in the DTC trade settlement process than affirmed trades.
“It is exciting and rewarding to see the industry embrace CTM as the highly-efficient single global platform for trade matching,” said Matthew Stauffer, Managing Director, Head of Institutional Trade Processing at DTCC, and President & CEO of DTCC ITP LLC. “The benefits of migrating the U.S. volume from the legacy OASYS service to CTM are being realized based upon the exceptional match rates and reductions in downstream settlement exceptions.”
Today, DTCC’s CTM global client community has grown to more than 2,700 firms, including over 1,500 buy-side firms,1,200 sell-side firms and 120 custodians, further strengthening its position as the industry standard for the central matching of cross-border and domestic transactions across multiple asset classes and markets. DTCC’s ITP is re-imagining institutional post trade processing to provide no-touch processing from post-execution to settlement finality via a single trusted integrated market utility platform.
DTCC’s CTM platform for the central matching of cross-border and domestic transactions automates the trade confirmation process across multiple asset classes, such as equities, fixed income and repurchase agreements (repos). CTM provides seamless connectivity from trade execution to settlement, including direct connectivity via FIX from front office to middle office trade processing as well as via the SWIFT network to a full community of custodian banks for the purposes of settlement notification. And, when used in conjunction with ALERT, you can automatically enrich trades with account and standing settlement instructions (SSI), ensuring all account information is accurate.
With over 45 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry. From 21 locations around the world, 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, data reporting and information services across asset classes, bringing increased security and soundness to financial markets. In 2020, DTCC’s subsidiaries processed securities transactions valued at more than U.S. $2.3 quadrillion. Its depository provides custody and asset servicing for securities issues from 170 countries and territories valued at U.S. $73.5 trillion. DTCC’s Global Trade Repository service, through locally registered, licensed, or approved trade repositories, processes 15 billion messages annually. To learn more, please visit us at www.dtcc.com or connect with us on LinkedIn, Twitter, YouTube and Facebook.