Investment Operations

S&P, DTCC to Collaborate on T+1 Offering

Failed Trades Management

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

S&P Global Market Intelligence today announced plans to collaborate with infrastructure giant DTCC to deliver a joint solution to support clients impacted by upcoming U.S. T+1 settlement requirements. The organizations plan to link S&P Global Market Intelligence’s Onboarding Accelerator platform with DTCC’s ALERT to increase transparency, efficiency and straight-through processing in the institutional trading industry.

According to a statement, 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 U.S.”

Onboarding Accelerator is S&P Global Market Intelligence’s automated onboarding solution, which, according to S&P literature, 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.

“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. 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.

The integration is projected to go live in H1 this year.