The Depository Trust and Clearing Corporation (DTCC) has debuted an automated tri-party trade matching workflow on its central trade matching (CTM) platform. Launched to first support the EMEA securities market, the new capability “streamlines communications between hedge funds, prime brokers and executing brokers” to improve post-trade processing and accelerate settlement.

In a statement, DTCC notes that delays to post-trade processing are currently due, in part, to prime brokers receiving details from hedge funds “in a multitude of formats and at varying times throughout execution day and sometimes T+1”. With the new tri-party matching solution, CTM can standardise and automate trade file delivery from hedge funds and communicate trade details in real time, thus enabling a no touch trade processing workflow.

The solution also brings real-time standardisation and automation to the trade allocation process. It uses CTM’s automated central matching functionality to deliver a golden copy of the transaction details to the prime broker when a trade match between a hedge fund and executing broker occurs.  

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Société Générale was the first prime broker to go live with the workflow. DTCC plans to expand the new capability beyond EMEA to other markets in the future.