Adoption of the CTM workflow is a critical enabler to achieving T+1 settlement, says DTCC
12 October 2021 US
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The Depository Trust & Clearing Corporation’s (DTCC’s) central trade manager (CTM) service for US domestic trade matching has grown to more than 1,800 firms, with organisations further consolidating global post-trade flows on a single platform.
Some 99 per cent of US trade flow volumes on the legacy DTCC OASYS service have migrated, or are in the process of migrating, to DTCC’s CTM.
CTM is DTCC’s platform for the central matching of cross-border and domestic transactions, automating the trade confirmation process across multiple asset classes, including equities, fixed income, repos and listed options.
The service enables users to access configurable matching rules, enrichment from DTCC’s ALERT database of standing settlement and account instructions, SWIFT messaging and, for US 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 solution, across asset classes and jurisdictions, benefitting from an average 95 per cent same-day matching rate.
Adopting a single global central matching platform further supports US efforts to accelerate the settlement cycle, says DTCC.
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 per cent affirmation rate by 9PM on trade date, demonstrating that the adoption of the CTM M2I workflow is a critical enabler to achieving T+1 settlement, DTCC highlights.
This automation can also reduce certain post-trade processing costs for cash securities at large broker-dealer firms by 20-25 per cent, according to DTCC’s recent survey of nine of the world’s leading broker-dealer firms.
Additionally, the higher affirmation rates achieved with the CTM central matching service results in a reduction of trade exceptions, fails and financing charges.
DTCC finds, through its analysis, that unaffirmed trades are 54 times more likely to result in a trade not being authorised by the counterparty in the DTC trade settlement process than affirmed trades.
Matthew Stauffer, managing director, head of institutional trade processing at DTCC, and president & CEO of DTCC institutional trade processing LLC, says: “It is exciting and rewarding to see the industry embrace CTM as the highly-efficient single global platform for trade matching.
“The benefits of migrating the US volume from the legacy OASYS service to CTM are being realised based upon the exceptional match rates and reductions in downstream settlement exceptions.”
Some 99 per cent of US trade flow volumes on the legacy DTCC OASYS service have migrated, or are in the process of migrating, to DTCC’s CTM.
CTM is DTCC’s platform for the central matching of cross-border and domestic transactions, automating the trade confirmation process across multiple asset classes, including equities, fixed income, repos and listed options.
The service enables users to access configurable matching rules, enrichment from DTCC’s ALERT database of standing settlement and account instructions, SWIFT messaging and, for US 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 solution, across asset classes and jurisdictions, benefitting from an average 95 per cent same-day matching rate.
Adopting a single global central matching platform further supports US efforts to accelerate the settlement cycle, says DTCC.
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 per cent affirmation rate by 9PM on trade date, demonstrating that the adoption of the CTM M2I workflow is a critical enabler to achieving T+1 settlement, DTCC highlights.
This automation can also reduce certain post-trade processing costs for cash securities at large broker-dealer firms by 20-25 per cent, according to DTCC’s recent survey of nine of the world’s leading broker-dealer firms.
Additionally, the higher affirmation rates achieved with the CTM central matching service results in a reduction of trade exceptions, fails and financing charges.
DTCC finds, through its analysis, that unaffirmed trades are 54 times more likely to result in a trade not being authorised by the counterparty in the DTC trade settlement process than affirmed trades.
Matthew Stauffer, managing director, head of institutional trade processing at DTCC, and president & CEO of DTCC institutional trade processing LLC, says: “It is exciting and rewarding to see the industry embrace CTM as the highly-efficient single global platform for trade matching.
“The benefits of migrating the US volume from the legacy OASYS service to CTM are being realised based upon the exceptional match rates and reductions in downstream settlement exceptions.”
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