DTCC expands global custodian users for settlement data service 

DTCC has gone live with four new custodians on the service, growing its impressive list of users to 11. 

By Joe Parsons

DTCC has increased the number of global custodian users of its Exception Manager solution to 11, after implementing a series of new data enhancements to the service. 

DTCC has gone live with four new custodians on the service, growing its impressive list of users to now include BNY Mellon, Brown Brothers Harriman, CACEIS, CIBC Mellon, Citi, HSBC, JP Morgan, Northern Trust, RBC I&TS, and State Street.  

The service recently added new proprietary data feeds from the DTC Inventory Management System (IMS), sourcing exceptions data directly from the US depository.  

“By partnering with DTCC to submit exception data directly into the Exception Manager platform, we are able to provide our clients with centralised access to accurate data and help prepare for CSDR by greatly reducing risk and quickly resolving exceptions,” said Dominic Crowe, North America head of custody and fund services, Citi.  

DTCC has also introduced a new proprietary data feed into the Exception Manager platform, integrating DTCC TradeSuite ID data and the IMS settlement status data, enabling custodians to identify any settlement exceptions with their client’s trades. 

The integrated platform of custodian, broker and depository data allows buy-side clients to manage exceptions in a single place as opposed to using multiple files, interfaces and portals.  

The use of settlement data and exception management has become increasingly important with the expected go-live of the Settlement Discipline Regime (SDR) and the mandatory buy-in process from February 2021. 

“The growth in the adoption of Exception Manager, particularly with the top global custodians, is an important step in moving the industry forward, in preparation for the upcoming CSDR mandate,” said Matthew Stauffer, managing director and head of institutional trade processing, DTCC.   

“As settlement fails will soon result in penalties and mandatory buy-ins under the Settlement Discipline Regime, quickly capturing, assessing and resolving exceptions is critical.”