DTCC and Investment Banks Sign MoU for Global Reference Data Platform

The Depository Trust & Clearing Corporation (DTCC) has signed a memorandum of understanding (MoU) with several large investment banks to jointly develop a comprehensive service to collect and manage client entity reference data.

The MoU, signed with Barclays, Credit Suisse, Goldman Sachs and JPMorgan Chase, is a further step towards the creation of a client data and documentation platform leveraging design work already undertaken in partnership with a broad group of major sell-side and buy-side firms globally. More immediate interim releases will be provided to address specific regulatory needs. Over time, the service will address client reference data requirements of banks and broker dealers, as well as asset managers and hedge funds, including, among other items, legal entity hierarchies, standing settlement instructions (SSIs), regulatory compliance data (Dodd-Frank, EMIR, etc.), client on-boarding/KYC, Tax/FATCA and other requirements.

“Our ultimate aim is to support the industry’s call for a comprehensive, centralized platform to effectively manage virtually all client reference data,” said Michael Bodson, DTCC President and Chief Executive Officer. “We are very pleased that we now have an MoU with a group of the industry’s top multinational participants. With their partnership, and the support of our Board of Directors, we are moving forward aggressively to bring this solution to market.”

In addition, by developing standardized processes and data formats in cooperation with market participants and the regulatory community, the parties to the MoU aim to effect substantial improvements in the control environment surrounding client onboarding and to streamline supervisory examination of these processes.

“Client service is of utmost importance to Credit Suisse, and the enhanced client reference data resulting from this service offering will assist us in meeting client needs,” said Colin Hall, Credit Suisse chief data officer, Investment Banking. “We firmly believe that our collaboration with the DTCC and other peer firms has the opportunity to deliver significant benefits to the broader market from control, regulatory and client service perspectives.”