The Depository Trust & Clearing Corporation (DTCC) ALERT, the web-based global database for the maintenance and communication of account and standing settlement instructions (SSIs), has more than 10 million SSIs now included in the service.
This marks a key milestone for DTCC as it represents an increase of 12 per cent in the past 12 months.
Of the 10 million SSIs, 30 per cent are now administered by data source providers through its custodian-managed model, Global Custodian Direct (GC Direct).
Through the GC Direct workflow, custodian banks and prime brokers become the owner and manager of SSIs for their buy-side clients, further automating the maintenance of SSIs and driving the prevalence of reliable source data.
Recently during the panel at the DTCC CSDR Series 2021, BNY Mellon’s Martin Smith said
We’ve looked at referenced data and adopted DTCC ALERT Global Custodian Direct, which has reduced our settlement risk for incorrect data and reduced our overheads and we can set up our accounts for our clients because we don't have that big bulk of data to maintain.”
DTCC says increasing efficiencies and reducing touch points are high priorities for the financial services industry, further amplified by the pandemic and in anticipation of the Central Securities Depositories Regulation’s (CSDR) settlement discipline regime.
ALERT significantly reduces trade failure by enabling a community of investment managers, broker/dealers and custodian banks to share accurate account and SSI data automatically worldwide, according to DTCC.
“SSIs represent a substantial pain point for firms, as missing or incomplete SSIs can lead to trade failures. The increased use of ALERT is confirmation of the financial service industry’s continued focus on automation and addressing this important area of the post-trade process,” says Moira Kiernan, DTCC director, product management.
“With 10 million SSIs now in ALERT, the service has become the central SSI utility to reduce trade fails and increase operational efficiencies, creating significant benefits from the centralisation and automation of high quality, golden source data,” adds Kiernan.
