DTCC, the leading post-trade market infrastructure for the global financial services industry, today announced that Societe Generale is the first Prime Broker to leverage CTM’s new automated three-way trade-matching workflow as the industry prepares for an increased focus on global rapid settlement requirements .
CTM is DTCC Institutional Trade Processing’s central matching service for cross-border and domestic trades across multiple asset classes.
CTM’s new capability simplifies trading communications between Hedge Funds, Prime Brokers and Executing Brokers. Initially launched to support EMEA securities markets, the company plans to expand access to the new functionality to other markets in the future.
As the global financial services industry globally prepares for increased rapid settlement initiatives, firms are taking a hard look at post-trade processes. Prime Brokers currently receive data from Hedge Funds in many formats and at different times during the execution day and sometimes T+1, creating delays in post-trade processing. With CTM’s new three-party matching capabilities, CTM standardizes and automates the delivery of Hedge Fund transaction records, ensuring transaction details are shared in real-time, further enabling a contactless transaction processing flow.
The new workflow leverages CTM’s automated central matching function and provides Prime Brokers with a golden copy of trade details when a trade match is made between a Hedge Fund and an Executing Broker, bringing real-time standardization and automation to the trade allocation process.
The workflow:
- Synchronizes trading communication automation with all Prime Brokers
- It provides real-time automated trade alerts
- Intelligently locates Prime Broker recipients via SSI Golden Source database
- It increases the use of PSET matching through CTM to mitigate settlement risk
- It enriches CTM trading with ALERT SSI, providing increased transparency in settlement instructions
- It provides a gold copy of a transaction that is pre-matched by the Hedge Fund and the Executing Broker
“From the beginning we were excited to be part of the initiative. CTM’s three-party matching workflow provides a much-needed solution in the prime brokerage space that improves post-trade processing workflows,” said Andrew Daponte at Societe Generale. “The service integrates CTM into the Prime Broker environment, which increases efficiency, capacity and the customer experience on the platform.”
“It is exciting to see Societe Generale’s adoption of CTM’s three-way workflow capabilities, a critical factor in speeding up settlement, as it automates golden trade communication to Prime Brokers once a match between the Hedge Fund and the Executing Broker occurs within the CTM platform,” said Val Wotton, CEO and General Manager of DTCC Institutional Trade Processing. “We look forward to bringing greater automation to Prime Brokers in EMEA and around the world as part of our plan to better support global financial markets, helping the industry prepare for future rapid settlement initiatives.”