DTCC has confirmed that its Margin Transit Utility (MTU) has achieved connectivity with major triparty agents including BNY Mellon, BNP Paribas Securities Services, Clearstream, Euroclear, JP Morgan, SIX and State Street.
“We are pleased that we have achieved connectivity with all the major triparty agents in the global financial markets,” said Bob Stewart, executive director, Institutional Trade Processing at DTCC. “UMR Phase 6 is right around the corner. The MTU triparty messaging service will create efficiencies for in-scope firms and triparty agents, assisting in compliance with the regulation and delivering a significant win for the industry.”
MTU aims to improve settlement efficiency and reduce operational complexity and risk for collateral call processing by standardising and automating the margin process. Its Triparty Messaging service assists in complying with regulatory requirements such as BCBS-IOSCO’s Uncleared Margin Rules (UMR). “For many firms caught by UMR Phase 6, the requirement to onboard to a triparty venue in order to receive collateral can be new and unfamiliar,” Stewart added. “This is where MTU core features and functionalities deliver a turn-key solution to the industry challenge.”
Coming into force in September, UMR Phase 6 is likely to bring up to 900 firms into scope. Establishing connectivity with multiple triparty agents could prove to be a significant time and resource drain. MTU’s pre-integrated connectivity and standardised settlement messaging delivers a common infrastructure, eliminating the need for direct builds.