DTCC has partnered with Nomura Research Institute (NRI) to provide automated central matching capabilities for cash securities transactions in Japan.
NRI provides various financial services to Japan’s financial services firms.
As part of the mandate, regional firms in Japan will be able to leverage CTM, DTCC’s platform for the central matching of cash securities transactions, directly from NRI’s SmartBridge Advance solution.
The move is part of an effort to improve post-trade efficiency and to prepare for the implementation of T+1 in the US market in May 2024.
The offering will include SSI enrichment from DTCC’s ALERT database which currently holds more than 14 million standing settlement and account instructions.
Industry owned and governed, CTM provides the central matching of cross-border and domestic equity and fixed income transactions, automating the trade allocation and confirmation process.
The platform helps buy-side firms – including investment managers, hedge funds, private banks, or outsourcers – and brokers to match and confirm trade details.
It also allows trading parties to send settlement notifications or copies for information to custodians and other third parties through DTCC’s Settlement Instruction Manager (SIM) service to achieve greater levels of straight-through processing.
CTM’s global client community has grown to more than 3,300 firms, including over 1,900 buy-side firms,1,400 sell-side firms and 120 custodians.
Val Wotton, managing director, institutional trade processing and president and CEO of DTCC ITP, says: “We are pleased to partner with NRI in bringing automated central matching services via direct connectivity for both domestic and cross-border transactions to the region.
“Achieving faster time to settlement for both cross-border and domestic transactions is now more important than ever, as firms around the world prepare for the US move to T+1.”
With only one year left until T+1 implementation, Wotton also said in a separate statement: "Market participants should already have preparations under way in order to provide sufficient time for industry-wide testing.
"The volume of changes being implemented to support the move to T+1 in the US, combined with the number of firms making changes, requires testing to be coordinated across many touch points to ensure readiness and a successful industry implementation.
"To meet the accelerated settlement timeframe, it is critical that market participants eliminate manual processes and maximise automation in the post-trade pre-settlement space. Specifically, the U.S Securities and Exchange Commission highlighted that institutional trades must be allocated, confirmed and affirmed as soon as is technologically possible and no later than trade-date, referred to as same day affirmation."
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