DTCC releases a new T+1 scorecard for CTM community
20 September 2023 US
Image: Vadym
DTCC has released a new T+1 scorecard, available to its Central Trade Matching (CTM) community through its ITP Data Analytics service.
Provided at no additional cost to the CTM community, the scorecard allows them to view the timeliness and efficiency of their operational processes through the lens of T+1.
It compiles underlying trade data to provide a dashboard identifying industry benchmarks, trend analysis and operational metrics. Metrics include the total trade volume submitted, the timeliness of parties submitting trades in CTM, the number of manual touches and the timeliness of affirmations by an affirming party.
DTCC has also said it will expand its trade archival service in early 2024, ahead of the T+1 implementation, to ensure CTM clients meet their recordkeeping obligations as a registered investment adviser (RIA).
The U.S. Securities and Exchange Commission’s (SEC’s) amendment to Rule 204-2 requires RIAs — that are parties to any transactions subject to the requirements of Rule 15c6-2 — to make and keep records of confirmations received, and allocations and affirmations sent, each with a date and time stamp.
This week, DTCC also announced that 350 investment managers are now using CTM’s automated trade affirmation capabilities to accelerate the post-trade lifecycle, as firms prepare for the US move to T+1 trade settlement.
Val Wotton, managing director and general manager of DTCC Institutional Trade Processing, says: “Clients utilising CTM benefit from central matching and auto-affirmation capabilities.”
“[These] accelerate the trade lifecycle and are often more efficient when compared to local matching and affirmation by the custodian or institution. With the global financial services industry preparing for the US move to T+1, adoption of CTM and the auto-affirmation workflows continues to increase, along with the realisation of its benefits to market participants.”
“Given the number of post-trade functions that are impacted by T+1, it is critical that market participants gain an in-depth understanding of their operational efficiency and record keeping obligations as soon as possible. We stand ready to help the industry successfully navigate this move, as we have done for earlier accelerations of the settlement cycle, and in offering best practice solutions to both aid in compliance as well as deliver new benefits.”
Provided at no additional cost to the CTM community, the scorecard allows them to view the timeliness and efficiency of their operational processes through the lens of T+1.
It compiles underlying trade data to provide a dashboard identifying industry benchmarks, trend analysis and operational metrics. Metrics include the total trade volume submitted, the timeliness of parties submitting trades in CTM, the number of manual touches and the timeliness of affirmations by an affirming party.
DTCC has also said it will expand its trade archival service in early 2024, ahead of the T+1 implementation, to ensure CTM clients meet their recordkeeping obligations as a registered investment adviser (RIA).
The U.S. Securities and Exchange Commission’s (SEC’s) amendment to Rule 204-2 requires RIAs — that are parties to any transactions subject to the requirements of Rule 15c6-2 — to make and keep records of confirmations received, and allocations and affirmations sent, each with a date and time stamp.
This week, DTCC also announced that 350 investment managers are now using CTM’s automated trade affirmation capabilities to accelerate the post-trade lifecycle, as firms prepare for the US move to T+1 trade settlement.
Val Wotton, managing director and general manager of DTCC Institutional Trade Processing, says: “Clients utilising CTM benefit from central matching and auto-affirmation capabilities.”
“[These] accelerate the trade lifecycle and are often more efficient when compared to local matching and affirmation by the custodian or institution. With the global financial services industry preparing for the US move to T+1, adoption of CTM and the auto-affirmation workflows continues to increase, along with the realisation of its benefits to market participants.”
“Given the number of post-trade functions that are impacted by T+1, it is critical that market participants gain an in-depth understanding of their operational efficiency and record keeping obligations as soon as possible. We stand ready to help the industry successfully navigate this move, as we have done for earlier accelerations of the settlement cycle, and in offering best practice solutions to both aid in compliance as well as deliver new benefits.”
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