Société Générale has become the first prime broker to tap DTCC’s CTM’s new automated tri-party trade matching workflow as the industry prepares for the heightened focus on meeting global accelerated settlement requirements.
Val Wotton
The introduction of CTM’s new workflow aims to streamline trade communications among hedge funds, prime brokers and executing brokers. By integrating CTM’s tri-party matching functionalities, the platform standardises and automates the delivery of hedge fund trade files, supporting real-time communication of trade details and fostering smooth trade processing flows.
“Right from the start we were excited to be part of the initiative. CTM’s tri-party matching workflow provides a much-needed solution in the prime brokerage space that improves post-trade processing workflows,” said Andrew Daponte at Societe Generale.
“The service integrates CTM into the prime broker environment, which increases efficiency, capacity and the client experience on the platform.”
The new workflow utilises CTM’s automated central matching functionality to furnish prime brokers with a definitive record of transaction details upon a trade match between a hedge fund and an executing broker, introducing real-time standardisation and automation to the trade allocation process.
Other key features include synchronising automation of the trade communication to all prime brokers, automating real-time trade notifications, identifying prime broker recipients via a golden source SSI database, and enhancing transactions in CTM with ALERT SSIs, promoting increased settlement instruction transparency. Additionally, the workflow provides a golden trade copy that has been pre-matched by the hedge fund and executing broker.
Val Wotton, managing director and general manager of DTCC institutional trade processing, said: “It is exciting to see Societe Generale’s adoption of CTM tri-party workflow capabilities, a critical enabler of accelerating settlement as it automates the communication of golden trade copy to prime brokers as soon as a match between the hedge fund and executing broker takes place within the CTM platform.”