With this milestone, the MTU Triparty Messaging Service provides dealers and buy-side firms a single interface to seamlessly connect with triparty agents, eliminating multiple connectivity builds
This connectivity also assists firms in complying with upcoming regulations including UMR Phase 6
New York/London/Hong Kong/Singapore/Sydney, August 3, 2022 ‒ The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced its Margin Transit Utility (MTU) has achieved connectivity with major triparty agents in the financial industry including Bank of New York (BNY) Mellon, BNP Paribas Securities Services, Clearstream, Euroclear, JP Morgan, SIX and State Street.
MTU enables users to efficiently enrich, settle, monitor and report matched collateral calls globally, while seamlessly connecting to and sharing information with multiple counterparties including automated instructions for major triparty agents.
MTU’s Triparty Messaging service assists clients in complying with regulatory requirements such as BCBS-IOSCO’s Uncleared Margin Rules (UMR). A number of clients impacted by UMR Phases 4 and 5, as well as many firms that will fall into scope under UMR Phase 6, have or are planning to implement MTU to achieve seamless connectivity with triparty agents.
UMR Phase 6 is anticipated to bring approximately 700 – 900 firms into scope, and building connectivity with multiple triparty agents could prove to be a significant time and resource drain. MTU’s pre-integrated connectivity and standardized settlement messaging for all major triparty agents delivers a common infrastructure, eliminating the need for direct builds. Further, MTU creates efficiencies for triparty agents by eliminating the need to onboard hundreds of clients in preparation for UMR Phase 6.
“We are pleased that we have achieved connectivity with all the major triparty agents in the global financial markets,” said Bob Stewart, Executive Director, Institutional Trade Processing at DTCC. “UMR Phase 6 is right around the corner. The MTU triparty messaging service will create efficiencies for in-scope firms and triparty agents, assisting in compliance with the regulation and delivering a significant win for the industry. For many firms caught by UMR Phase 6, the requirement to onboard to a triparty venue in order to receive collateral can be new and unfamiliar. This is where MTU core features and functionalities deliver a turn-key solution to the industry challenge.”
DTCC’s ITP solutions currently enable 6,000+ clients across 52 markets around the world to instantly access counterparties in established markets as well as growth markets driving best practices, promoting effective communications and accelerating their post-trade processes. DTCC is the only provider uniquely positioned to facilitate the straight-through processing of institutional trades by seamlessly connecting its global client community to an open and integrated ecosystem that services the full post-trade lifecycle.
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 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 2021, DTCC’s subsidiaries processed securities transactions valued at nearly U.S. $2.4 quadrillion. Its depository provides custody and asset servicing for securities issues from 177 countries and territories valued at U.S. $87.1 trillion. DTCC’s Global Trade Repository service, through locally registered, licensed, or approved trade repositories, processes 16 billion messages annually. To learn more, please visit us at www.dtcc.com or connect with us on LinkedIn, Twitter, YouTube, Facebook, and Instagram.