DTCC and Nomura Research Institute collaborate to improve post-trade automation and efficiency in Japan

The move comes as firms prepare for the 2024 implementation of T+1 settlement cycles in the US; addresses domestic and cross-border transactions.

The Depository Trust & Clearing Corporation (DTCC) has announced its collaboration with Nomura Research Institute (NRI) to provide automated central matching capabilities for cash securities in Japan.

The partnership will offer regional firms in Japan the ability to leverage CTM, DTCC’s platform for the central matching of cash securities transactions, directly from NRI’s SmartBridge Advance offering, allowing users to achieve accelerated settlement times and increased efficiency.

DTCC’s ALERT database, which currently holds more than 14 million standing settlement and account instructions (SSIs), will offer SSI enrichment which will help increase accuracy and reduce risk.

Before the partnership, several broker/dealer firms utilised two separate platforms – DTCC’s CTM and NRI’s SmartBridge – for trade matching with Japanese firms. Following the collaboration, firms will now be able to manage these transactions on one global post-trade platform.

Leveraging increased straight through processing and automation in post-trade processes coincides with steps being taken within the industry as firms prepare for the T+1 settlement cycle in the US on 28 May next year.

Read more: T+1 settlement: The seismic post-trade change impacting the trading desk 

“We are pleased to partner with NRI in bringing automated central matching services via direct connectivity for both domestic and cross-border transactions to the region,” said Val Wotton, managing director and head of institutional trade processing at DTCC.

“Achieving faster time to settlement for both cross-border and domestic transactions is now more important than ever, as firms around the world prepare for the US move to T+1. As an automated central matching service that connects firms in 52 countries, CTM allows counterparties to reach settlement finality faster while seamlessly connecting them to thousands of counterparties around the world.”