BNP Paribas and JP Morgan are preparing to go live with the Depository Trust & Clearing Corporation’s (DTCC) CTM automated tri-party matching workflow for prime brokers by the end of 2025.
Val Wotton
The move is aimed at simplifying communications between hedge funds, prime brokers, and executing brokers, while reducing delays and operational risk. It comes as markets across the UK, EU, Switzerland, and Liechtenstein prepare for the shift to a T+1 settlement cycle by October 2027.
Currently, prime brokers often receive trade details from hedge funds in different formats and at varying times, which can extend into T+1 and slow post-trade processing.
CTM’s workflow standardises and automates the delivery of trade files, providing prime brokers with a “golden copy” of transaction details once a trade is matched between a hedge fund and an executing broker. This allows allocations to be processed in real time, improving efficiency and transparency across the post-trade chain.
“We are excited to have BNP Paribas and JP Morgan adopt CTM’s tri-party workflow as Prime Brokers,” said Val Wotton, DTCC managing director and global head of equities solutions. “This is a pivotal step in further automating and accelerating settlement processes, and we anticipate it will greatly enhance automation for Prime Brokers in EMEA and globally as additional financial markets transition to a T+1 settlement cycle.”
“Joining DTCC’s CTM tri-party matching workflow as a Prime Broker aligns with BNP Paribas continuing commitment to deliver the best-in-class experience for our clients,” said Wayne Howard, global head of prime brokerage operations client services. “This solution will enable us to further enhance post-trade processing as we work towards ensuring support for T+1 settlement across markets.”
The adoption reflects CTM’s role in supporting post-trade processes. By standardising trade communications, automating notifications, and providing a centralised source of pre-matched trade information, the workflow is designed to help reduce settlement risk and improve operational efficiency.
The use of ALERT SSIs also provides greater transparency in settlement instructions, supporting more consistent post-trade operations for prime brokers.
“DTCC’s initiative to incorporate CTM into the Prime Broker environment will enable our teams to optimise post-trade processes, emphasising accuracy and speed, which will drive efficiencies for our clients,” said Anthony Fraser, global head of prime financial services operations at JP Morgan. “As a client-centric business, we are dedicated to supporting innovative solutions that enhance the client experience and maintain our service quality, at scale.”