DTCC鈥檚 MTU community grows to 50 firms
21 July 2020 New York
Image: metamorworks/Shutterstock.com
Increasing numbers of the Depository Trust & Clearing Corporation鈥檚 (DTCC) clients are opting to automate their margin calls through its Margin Transit Utility (MTU), with 50 firms now on board.
The community of users representing thousands of Credit Support Annexes (CSAs), with and includes dealer and buy-side organisations around the globe.
DTCC says its MTU was created to improve settlement efficiency and reduce operational complexity and risk for collateral call processing.
The service includes connectivity from AcadiaSoft鈥檚 Margin Manager and connectivity to a number of complementary collateral offerings, including CloudMargin, VERMEG鈥檚 (formerly Lombard Risk) Colline platform and TriOptima (triResolve Margin).
As the markets have experienced unprecedented increases in volatility and margin call demands, coupled with the final looming phases of Uncleared Margin Rules (UMR) rules for over-the-counter (OTC) derivatives, an increasing number of firms are actively looking to replace manual margin call processes with automation.
By automating the margin call process, MTU enables firms to efficiently validate, enrich, settle, report and monitor matched collateral calls globally while connecting to and sharing information with multiple counterparties, says DTCC.
鈥淢TU aims to deliver a streamlined margin settlement process, automating key processes with our counterparties,鈥� says Rob Marro, executive director at Morgan Stanley. 鈥淭hrough broader MTU participation we expect this to be integral to our ability to improve efficiency and remove complexity in tying the margin call to the settlement process and speeding reconciliations.鈥�
One of the first participants to join the MTU community was Franklin Templeton and its director of global trade services, Krzysztof Wierzchowski, says the solution has 鈥渘ot only enabled us to meet the challenges of today, reducing risk and increasing efficiency at a time of uncertainty, but also positions us well to meet the regulatory demands of tomorrow鈥�.
Elsewhere, John Straley, executive director, institutional trade processing at DTCC adds: 鈥淎s a critical market infrastructure provider, our objective is to help firms efficiently comply with upcoming regulation while alleviating the pressures that spikes in margin call volume can bring, especially during today鈥檚 volatile markets.鈥�
The growth in MTU users comes shortly after DTCC revealed that it had seen an 80 percent increase in the number of clients signed-up for its SFTR service via GTR since the beginning of the year, bringing the number of prospective users to 250.
The SFTR-focused solution builds upon a series of collaborations between DTCC and TriOptima that began in 2008.
Previous joint-projects include TriOptima鈥檚 triResolve repository reconciliation service building pipes with DTCC in 2016 to facilitate the reconciling of data reported GTR by institutions regulated in Singapore, Australia and Hong Kong.
The community of users representing thousands of Credit Support Annexes (CSAs), with and includes dealer and buy-side organisations around the globe.
DTCC says its MTU was created to improve settlement efficiency and reduce operational complexity and risk for collateral call processing.
The service includes connectivity from AcadiaSoft鈥檚 Margin Manager and connectivity to a number of complementary collateral offerings, including CloudMargin, VERMEG鈥檚 (formerly Lombard Risk) Colline platform and TriOptima (triResolve Margin).
As the markets have experienced unprecedented increases in volatility and margin call demands, coupled with the final looming phases of Uncleared Margin Rules (UMR) rules for over-the-counter (OTC) derivatives, an increasing number of firms are actively looking to replace manual margin call processes with automation.
By automating the margin call process, MTU enables firms to efficiently validate, enrich, settle, report and monitor matched collateral calls globally while connecting to and sharing information with multiple counterparties, says DTCC.
鈥淢TU aims to deliver a streamlined margin settlement process, automating key processes with our counterparties,鈥� says Rob Marro, executive director at Morgan Stanley. 鈥淭hrough broader MTU participation we expect this to be integral to our ability to improve efficiency and remove complexity in tying the margin call to the settlement process and speeding reconciliations.鈥�
One of the first participants to join the MTU community was Franklin Templeton and its director of global trade services, Krzysztof Wierzchowski, says the solution has 鈥渘ot only enabled us to meet the challenges of today, reducing risk and increasing efficiency at a time of uncertainty, but also positions us well to meet the regulatory demands of tomorrow鈥�.
Elsewhere, John Straley, executive director, institutional trade processing at DTCC adds: 鈥淎s a critical market infrastructure provider, our objective is to help firms efficiently comply with upcoming regulation while alleviating the pressures that spikes in margin call volume can bring, especially during today鈥檚 volatile markets.鈥�
The growth in MTU users comes shortly after DTCC revealed that it had seen an 80 percent increase in the number of clients signed-up for its SFTR service via GTR since the beginning of the year, bringing the number of prospective users to 250.
The SFTR-focused solution builds upon a series of collaborations between DTCC and TriOptima that began in 2008.
Previous joint-projects include TriOptima鈥檚 triResolve repository reconciliation service building pipes with DTCC in 2016 to facilitate the reconciling of data reported GTR by institutions regulated in Singapore, Australia and Hong Kong.
← Previous industry article
Margin call breaches could drive clearinghouse scrutiny, says Fitch Ratings
Margin call breaches could drive clearinghouse scrutiny, says Fitch Ratings
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 麻豆传媒 Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 麻豆传媒 Finance Times
