National Australia Bank to submit and maintain SSIs on DTCC’s ALERT service

The new agreement will bring greater automation and improved accuracy to the post-trade lifecycle.

By Wesley Bray

National Australia Bank Asset Servicing (NAS) has agreed to submit and maintain standing settlement instructions (SSIs) directly via The Depository Trust and Clearing Corporation’s (DTCC) ALERT service.

DTCC’s ALERT service is a web-based global database for the maintenance and communication of account and SSI data.

NAS will leverage ALERT’s global custodian (GC) direct workflow, which automates the exchange of SSIs between a custodian’s central repository and ALERT.

This process allows the global custodian or prime broker to own and manage their buy-side clients’ SSI data, creating a ‘golden copy’ within the ALERT platform that further automates the maintenance of SSIs and drives reliable source data.

“We pride ourselves on being client-centric and saw great value in maintaining and providing SSI data to our regional clients through ALERT, thereby eliminating the need for them to manually enter SSI details and improving our internal data management processes,” said Wayne Francis, head of network management and custody support, at NAB Asset Servicing.

“With ALERT, we are able to bring greater efficiency, risk mitigation and accuracy to the post-trade settlement process for our client-base.”

As NAS migrates client account and SSI data onto the ALERT service, it will track and monitor trade failure numbers, which it expects to be reduced significantly.

“We are pleased to have NAS entering and managing SSIs directly through ALERT as a data source provider. SSIs represent a significant pain point for firms, as missing or incomplete SSIs is a common cause of trade failures,” said Bob Stewart, executive director, institutional trade processing, at DTCC.

“Centralisation and automation of high quality, golden source SSI data published by custodians lowers the chances for failed trades while improving efficiency and auditability, key wins for NAS and their clients.”

DTCC’s institutional trade processing (ITP) service suite, which features ALERT as a key element, offers buy-side, sell-side and custodian firms an end-to-end “no touch” processing solution throughout their post-trade activity.

Reduced touch points in the post-trade lifecycle have become a huge priority for firms across the financial services industry, particularly as a result of recent market volatility and upcoming regulatory requirements.

The Central Securities Depositories Regulation’s (CSDR) Settlement Discipline Regime, which is to be implemented in February 2022, will impose penalties for failed transactions by European firms and will also have an impact on global firms that enter into transactions with European firms.