The affirmation rate on trade date has improved, but it’s still not good enough. In a recently released affirmation progress statement, the US’ Depository Trust and Clearing Corporation (DTCC) revealed that the affirmation rate in January 2024 was 73 percent – an improvement on the 69 percent seen in December 2023, but still falling short of the 90 percent recommended in an earlier affirmation report.

In a breakdown of affirmation rates for various market segments at the end of January 2024, the custodian or investment manager (self) affirmation rate was the lowest at 51 percent. The prime broker affirmation rate was 81 percent. Only the investment manager auto affirmation (central match) rate surpassed DTCC’s 90 percent target at 92 percent.

Seeking affirmation

The Financial Industry Regulatory Authority (FINRA) has published a regulatory notice that requires broker-dealers to “take certain actions so that 100 percent of all trades are affirmed as soon as technologically practicable and no later than the end of trade date”. The DTCC claimed that its recommendation for a 90 percent affirmation rate by 9pm on trade date was based on an analysis it conducted on trades submitted to the Depository Trust Company already affirmed on T+1.


To conclude, the DTCC reiterated that market participants should “leverage automated central trade matching solutions with workflows that automatically trigger trade affirmation and the delivery of DTC-eligible securities directly to DTC for settlement”. Firms should also “ensure their buy-side clients are aware of their responsiblities around same-day affirmation”.