DTCC M2i workflow found to boost settlement efficiency
14 February 2024 US
Image: Olivier Le Moal/stock.adobe.com
Goldman Sachs has achieved more than 99 per cent same-day affirmation rate and a significant improvement in settlement rates, according to DTCC.
This has been achieved through the use of DTCC’s CTM Match To Instruct (M2i) workflow in Q4 of 2023, the company says.
When trades were matched and affirmed with investment manager counterparties who also use the M2i workflow, an additional 38 per cent reduction in same-day affirmation exceptions was observed at the bank, along with a 64 per cent reduction in US settlement fails by value.
CTM’s M2i workflow reduces same day affirmation rates on DTC-eligible securities when a trade match occurs between an investment manager and an executing broker, providing central matching and auto-affirmation processes.
Goldman Sachs initially implemented the workflow in Q4 2022 as part of its project to improve settlement efficiency and create a streamlined post-trade experience. As the US approaches the T+1 go-live date, this is a priority for many firms.
Risa Lederhandler, global head of equities and securities services operations at Goldman Sachs, says: “Automation is a key enabler of operational efficiency and enhanced client experience. M2i’s process increased affirmation rates by 9pm ET on trade day, a key objective as we prepare for the move to T+1.
“In addition, the M2i platform’s enhanced standard settlement instruction enrichment capabilities resulted in more settlements occurring without additional input from our operations teams.”
Val Wooton, managing director and general manager at DTCC, comments: “Clients utilising M2i benefit from a significant increase in same day affirmation rates for DTC-eligible trades, ultimately reducing costs related to trade fails, exception resolution costs and operational friction.”
This has been achieved through the use of DTCC’s CTM Match To Instruct (M2i) workflow in Q4 of 2023, the company says.
When trades were matched and affirmed with investment manager counterparties who also use the M2i workflow, an additional 38 per cent reduction in same-day affirmation exceptions was observed at the bank, along with a 64 per cent reduction in US settlement fails by value.
CTM’s M2i workflow reduces same day affirmation rates on DTC-eligible securities when a trade match occurs between an investment manager and an executing broker, providing central matching and auto-affirmation processes.
Goldman Sachs initially implemented the workflow in Q4 2022 as part of its project to improve settlement efficiency and create a streamlined post-trade experience. As the US approaches the T+1 go-live date, this is a priority for many firms.
Risa Lederhandler, global head of equities and securities services operations at Goldman Sachs, says: “Automation is a key enabler of operational efficiency and enhanced client experience. M2i’s process increased affirmation rates by 9pm ET on trade day, a key objective as we prepare for the move to T+1.
“In addition, the M2i platform’s enhanced standard settlement instruction enrichment capabilities resulted in more settlements occurring without additional input from our operations teams.”
Val Wooton, managing director and general manager at DTCC, comments: “Clients utilising M2i benefit from a significant increase in same day affirmation rates for DTC-eligible trades, ultimately reducing costs related to trade fails, exception resolution costs and operational friction.”
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