Six of the largest global banks in conjunction with the Depository Trust & Clearing Corporation (DTCC) have launched Clarient Global, a new DTCC company that will operate a third-party centralised client data collection and validation utility that seeks to improve client onboarding and additional back-office processes.
The new utility’s platform, dubbed Clarient Entity Hub, will leverage the DTCC’s Avox legal-entity validation and monitoring service and Omgeo Alert standing settlement instruction service as well as being integrated into the DTCC Client Reference Data and Enrichment Service, which collects the necessary counterparty information for European market infrastructure regulation reporting requirements.
“Clarient Entity Hub is a unique offering that we’ve developed in close collaboration with our founder banks and over 10 of the world’s top asset managers and hedge funds, who have provided significant input into the overall user experience as part of the Clarient User Partner Program,” says Matthew Stauffer, CEO of Clarient Global. “We look forward to our launch later this year.”
Investment managers, hedge funds and corporates will be able to upload, validate, permission, distribute and store entity-level information and hierarchy data in a standard and secure format on the new platform.
In turn, other organizations like the utility's backers BNY Mellon, Barclays, Credit Suisse, Goldman Sachs, JP Morgan Chase and State Street, can use this utility to automate their collection and validation of client data and documentation for such tasks as meeting Dodd-Frank, Foreign Account Tax Compliance Act and ‘know your client’ regulatory requirements.
“The client on-boarding process has long been a challenge for market participants worldwide, and we look forward to a collaboration that will enable us to bring the optimal solution to the industry,” adds David Crawford, executive vice president and head of State Street's Global Transaction Banking Services.