DTCC’s MTU connects to major triparty agents
03 August 2022 US
Image: metamorworks/stock.adobe.com
The Depository Trust & Clearing Corporation (DTCC)’s Margin Transit Utility (MTU) service is now connected with major tri-party agents including BNY Mellon, BNP Paribas Securities Services, Clearstream and Euroclear.
MTU enables users to enrich, settle, monitor and report matched collateral calls globally, while connecting to and sharing information with multiple counterparties including automated instructions for tri-party agents.
MTU’s Triparty Messaging service assists clients in complying with regulatory requirements such as the Basel Committee on Banking Supervision-International Organization of Securities Commission’s Uncleared Margin Rules (UMR).
According to DTCC, UMR Phase 6 is anticipated to bring approximately 700 to 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 standardised settlement messaging for all major tri-party agents aims to deliver a common infrastructure, eliminating the need for direct builds.
In addition, MTU is expected to create efficiencies for tri-party agents by eliminating the need to onboard hundreds of clients in preparation for UMR Phase 6.
J.P. Morgan, SIX and State Street have also connected with the MTU service.
Commenting on the milestone, Bob Stewart, executive director of institutional trade processing at DTCC, says: “UMR Phase 6 is right around the corner. The MTU tri-party messaging service will create efficiencies for in-scope firms and tri-party 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 tri-party 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.”
MTU enables users to enrich, settle, monitor and report matched collateral calls globally, while connecting to and sharing information with multiple counterparties including automated instructions for tri-party agents.
MTU’s Triparty Messaging service assists clients in complying with regulatory requirements such as the Basel Committee on Banking Supervision-International Organization of Securities Commission’s Uncleared Margin Rules (UMR).
According to DTCC, UMR Phase 6 is anticipated to bring approximately 700 to 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 standardised settlement messaging for all major tri-party agents aims to deliver a common infrastructure, eliminating the need for direct builds.
In addition, MTU is expected to create efficiencies for tri-party agents by eliminating the need to onboard hundreds of clients in preparation for UMR Phase 6.
J.P. Morgan, SIX and State Street have also connected with the MTU service.
Commenting on the milestone, Bob Stewart, executive director of institutional trade processing at DTCC, says: “UMR Phase 6 is right around the corner. The MTU tri-party messaging service will create efficiencies for in-scope firms and tri-party 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 tri-party 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.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
