BNP Paribas and J.P. Morgan plan to adopt the Depository Trust & Clearing Corporation’s (DTCC) automated tri-party matching workflow for prime brokers, with both targeting go-live by the end of 2025, announces DTCC in a press release.
The move comes as Europe, the UK, Switzerland, and Liechtenstein prepare to follow North America’s example and shift to T+1 settlement, scheduled for October 2027. Reducing operational frictions between hedge funds, prime brokers, and executing brokers is viewed as an important part of that transition.
“Golden copy”
Today, prime brokers often receive hedge fund trade details in multiple formats and at varying times, which can delay processing into the following day. DTCC’s workflow channels the trade data into its CTM central matching platform, which provides a “golden copy” of matched transactions. This is then delivered automatically and in real time to the prime broker, enabling faster allocation and reducing the scope for errors.
According to DTCC, the service also provides automated notifications, settlement instruction enrichment through its ALERT database, and increased use of PSET matching to mitigate settlement risk.
CTM is already used by more than 6.000 clients in 89 countries, across asset classes and borders, says DTCC. By extending its tri-party matching workflow into prime brokerage, DTCC is seeking to align post-trade communication more tightly with the industry’s T+1 readiness efforts.
