S&P Global Market Intelligence to Collaborate with DTCC on T+1 Offering
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Insights
The collaboration between S&P Global Market Intelligence and DTCC to integrate Onboarding Accelerator with ALERT is a strategic move in anticipation of the U.S. T+1 settlement requirements. This integration is poised to streamline post-trade processes, which is critical for financial institutions as they adapt to the shortened settlement cycle. By enhancing the transparency and efficiency of trade settlements, this initiative could lead to a reduction in operational costs for participating organizations. Furthermore, the reduction in settlement failures is likely to improve the overall health of the securities market by mitigating systemic risks associated with trade settlement delays.
From an investor perspective, the increased efficiency and reduced risk of settlement failure could enhance market confidence and potentially lead to increased trading volumes. Moreover, this collaboration represents an innovative approach to regulatory compliance, which could set a precedent for future partnerships within the financial services industry. It is important to note that the successful implementation of this integration could have positive implications for S&P Global's and DTCC's market positioning, potentially impacting their stock performance favorably if the market perceives this move as a strong value proposition.
The legal implications of the impending T+1 settlement cycle in the U.S. are significant and the initiative by S&P Global Market Intelligence and DTCC to link their services in response to these changes is a proactive measure. The legal framework of the financial markets requires entities to continuously adapt to regulatory changes to ensure compliance and avoid penalties. By providing a solution that aids in this adaptation, the companies are not only supporting their clients but also helping to maintain the integrity of the market's legal and regulatory structure.
It is essential to understand that the integration of Onboarding Accelerator with ALERT will need to adhere to various regulatory standards, including those related to data privacy and security. Ensuring compliance with these regulations will be crucial for the success of the initiative and will require ongoing legal oversight. The legal teams involved will play a pivotal role in navigating these complex regulatory landscapes to deliver a seamless and compliant solution.
The institutional trading industry is highly competitive and sensitive to technological advancements. The integration between S&P Global Market Intelligence's Onboarding Accelerator and DTCC's ALERT is expected to address a critical market need for more efficient trade settlement processes. This move is likely to resonate well with the institutional clients of both entities, who are continuously seeking ways to enhance operational efficiencies and reduce costs.
Market research indicates that transparency and straight-through processing are key factors that clients consider when selecting financial service providers. By offering a solution that improves these aspects, S&P Global Market Intelligence and DTCC are positioning themselves favorably within the market. Additionally, by reducing settlement failures, the integration could lead to a more robust and reliable trading environment, which is a significant selling point for prospective clients. The market's response to this integration will be an important indicator of the demand for such innovations in the post-trade services sector.
Organizations plan to link S&P Global Market Intelligence's Onboarding Accelerator with DTCC's ALERT with aim of delivering increased transparency to broker trades and reducing settlement failures
By linking the services, Onboarding Accelerator users will be able to query the status of critical standing settlement instructions (SSI) reference data for a particular account and market directly within the S&P Global Market Intelligence platform. The SSI status query can be done at the point of account opening or at any time during the trade lifecycle, resulting in less trade breaks and settlement fails and increased efficiency in support of a T+1 settlement cycle. The SSI status information for trade permissions will be available via an ALERT API.
"Linking Onboarding Accelerator with the industry standard ALERT service will bring increased transparency to buy side clients, custodians and brokers. It will streamline a manual, antiquated process, maximizing efficiency and minimizing trade settlement failures," said Brittany Garland, Head of Regulatory & Compliance for Enterprise Solutions, S&P Global Market Intelligence. "S&P Global Market Intelligence and DTCC are committed to increasing efficiency and transparency and supporting our clients as they navigate the challenges posed by upcoming tightened settlement requirements in the
"Connecting client reference data with SSI instruction statuses helps market participants to address discrepancies that could impede or delay settlement," said Bob Stewart, DTCC Executive Director, Institutional Trade Processing. "We are pleased to collaborate with S&P Global Market Intelligence in bringing this innovative joint solution to market participants around the world and further supporting our mutual clients as they look to improve post-trade processes as they work towards a T+1 settlement cycle in the
Onboarding Accelerator is S&P Global Market Intelligence's automated onboarding solution utilized by brokers, custodians, corporates, fund admins, managers and service providers. The solution integrates entity data, document collection, KYC and tax profile validation, regulatory protocols and self-declarations, legal and credit agreements and operational set up, enabling a user to minimize operational risk, standardize and automate processes and provide transparency to counterparties.
With a global community of over 3500 organizations, DTCC's ALERT is an online global database for the maintenance and communication of account and standing settlement instructions (SSIs). ALERT brings consistency and risk reduction to its community of users, providing access to a growing database with over 15 million SSIs, of which 53 percent are managed directly by source providers such as global custodians and prime brokers. Through ALERT's custodian workflows, custodian banks and prime brokers maintain SSIs on behalf of their clients, further automating the maintenance of timely and reliable SSIs from source providers.
For more information and to speak to one of the specialists, please visit Onboarding Accelerator: Designed to revolutionize.
The integration is projected to go live in H1 this year.
S&P Global Market Intelligence's opinions, quotes, and credit-related and other analyses are statements of opinion as of the date they are expressed and not statements of fact or recommendation to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security.
About S&P Global Market Intelligence
At S&P Global Market Intelligence, we understand the importance of accurate, deep and insightful information. Our team of experts delivers unrivaled insights and leading data and technology solutions, partnering with customers to expand their perspective, operate with confidence, and make decisions with conviction.
S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information, visit www.spglobal.com/marketintelligence.
About DTCC
With 50 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry. From 20 locations around the world, DTCC, through its subsidiaries, automates, centralizes, and standardizes the processing of financial transactions, mitigating risk, increasing transparency, enhancing performance and driving efficiency for thousands of broker/dealers, custodian banks and asset managers. Industry owned and governed, the firm innovates purposefully, simplifying the complexities of clearing, settlement, asset servicing, transaction processing, trade reporting and data services across asset classes and bringing increased security, enhanced resilience and soundness to financial markets. In 2022, DTCC's subsidiaries processed securities transactions valued at
© 2023 DTCC. All rights reserved. DTCC and DTCC (Stylized) are registered and unregistered trademarks of The Depository Trust & Clearing Corporation.
The services described above are provided under the "DTCC" brand name by certain affiliates of The Depository Trust & Clearing Corporation ("DTCC"). DTCC itself does not provide such services. Each of these affiliates is a separate legal entity, subject to the laws and regulations of the particular country or countries in which such entity operates. See www.dtcc.com for a detailed description of DTCC, its affiliates and the services they offer.
Media Contact
Amanda Oey
S&P Global Market Intelligence
+1 212 438-1904
amanda.oey@spglobal.com
DTCC Media Contact
Madiha Arsalan
The Depository Trust and Clearing Corporation
+1 813 470 2217
marsalan@dtcc.com
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SOURCE S&P Global Market Intelligence
FAQ
What is the collaboration between S&P Global Market Intelligence and DTCC about?
What is the purpose of linking Onboarding Accelerator with DTCC's ALERT?
What benefits will Onboarding Accelerator users have from this collaboration?
Who stated that the collaboration will bring increased transparency to buy side clients, custodians, and brokers?
What is the purpose of connecting client reference data with SSI instruction statuses?
