DTCC expands custodian community ahead of CSDR go live
01 July 2020 London
Image: Opticmarc/Shutterstock.com
The global custodian community of the Depository Trust and Clearing Corporation (DTCC) has grown to 11 in preparation for the Central Securities Depositories Regulation (CSDR).
CSDR is due to come into effect in February with its settlement discipline regime which aims to improve settlement rates by imposing cash penalties and a mandatory buy-in rule for failing trades.
DTCC custodian community members include BNY Mellon, Brown Brothers Harriman, CACEIS, CIBC Mellon, Citi, HSBC and J.P. Morgan.
They are joined by Northern Trust, RBC Investor & Treasury Services and State Street.
All members directly submit their exception data to DTCC’s Exception Manager platform.
The platform integrates custodian, broker, and depository data to allow buy-side clients to manage exceptions from a centralised location.
It also contains a proprietary data feed that integrates DTCC TradeSuite ID affirmed data and DTCC inventory management system settlement status data.
Through these institutional trade processing solutions, financial firms can comply with CSDR mandates in an efficient workflow that increases affirmation rates and helps to prevent settlement fails, says DTCC.
Dominic Crowe, head of custody and fund services, North America, at Citi, comments: “By partnering with DTCC to submit exception data directly into the Exception Manager platform, we are able to provide our clients with centralised access to accurate data and help prepare for CSDR by greatly reducing risk and quickly resolving exceptions.”
Matthew Stauffer, managing director and head of institutional trade processing at DTCC, adds: “The growth in the adoption of Exception Manager, particularly with the top global custodians, is an important step in moving the industry forward in preparation for the upcoming CSDR mandate.
"As settlement fails will soon result in penalties and mandatory buy-ins under the settlement discipline regime, quickly capturing, assessing and resolving exceptions is critical.”
CSDR is due to come into effect in February with its settlement discipline regime which aims to improve settlement rates by imposing cash penalties and a mandatory buy-in rule for failing trades.
DTCC custodian community members include BNY Mellon, Brown Brothers Harriman, CACEIS, CIBC Mellon, Citi, HSBC and J.P. Morgan.
They are joined by Northern Trust, RBC Investor & Treasury Services and State Street.
All members directly submit their exception data to DTCC’s Exception Manager platform.
The platform integrates custodian, broker, and depository data to allow buy-side clients to manage exceptions from a centralised location.
It also contains a proprietary data feed that integrates DTCC TradeSuite ID affirmed data and DTCC inventory management system settlement status data.
Through these institutional trade processing solutions, financial firms can comply with CSDR mandates in an efficient workflow that increases affirmation rates and helps to prevent settlement fails, says DTCC.
Dominic Crowe, head of custody and fund services, North America, at Citi, comments: “By partnering with DTCC to submit exception data directly into the Exception Manager platform, we are able to provide our clients with centralised access to accurate data and help prepare for CSDR by greatly reducing risk and quickly resolving exceptions.”
Matthew Stauffer, managing director and head of institutional trade processing at DTCC, adds: “The growth in the adoption of Exception Manager, particularly with the top global custodians, is an important step in moving the industry forward in preparation for the upcoming CSDR mandate.
"As settlement fails will soon result in penalties and mandatory buy-ins under the settlement discipline regime, quickly capturing, assessing and resolving exceptions is critical.”
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