JP Morgan has confirmed that it is leveraging the Depository Trust and Clearing Corporation’s (DTCC) institutional trade processing central matching service, CTM, to enhance the firm’s capabilities in the US listed options market.
The offering will allow JP Morgan to bolster its straight-through processing (STP) offering for clients, while also boosting operational efficiency and mitigating risk.
Val Wotton
The move comes as the US listed options market continually grows, and demand is increasing for new ways to reduce manual intervention, streamline reconciliations and accelerate post-trade processing.
Val Wotton, DTCC managing director and global head of equities solutions, said: “As firms face increasing trading volumes and continued pressure to improve operating efficiency, automation of post-trade processes is becoming increasingly important. JP Morgan’s use of CTM demonstrates how standardisation and automated matching can help reduce operational friction while enabling more scalable processing.”
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In addition, the move provides JP Morgan clients with capabilities including: standardising the reconciliation process, eliminating the need for custom reposts and file reconciliations for each trading partner, and gaining faster submission times to clearing through the accelerated matching process.
DTCC initially introduced the submission and matching of US listed options on CTM in 2023, and currently 32 buy-side clients are live in production on the workflow.
The entire offering provides central matching for cross-border and domestic transactions in various asset classes and also spans in excess of 6000 clients across more than 85 countries.
Vincenzina Megna, head of equity operations at JP Morgan, added: “By leveraging CTM’s automated matching capabilities for US listed options, we have been able to streamline commissions reconciliation processes, reduce manual touchpoints and improve overall workflow efficiency.
“As market volumes continue to grow, automation will remain a key component of supporting scalable and resilient post-trade operations.”