Sumitomo Mitsui Trust Asset Management Adopts DTCC’s ITP Services as Industry Prepares for U.S. Move to T+1
April 17 2024 - 8:00AM
Business Wire
DTCC, the premier post-trade market infrastructure for the
global financial services industry, today announced that Sumitomo
Mitsui Trust Asset Management is leveraging DTCC’s Institutional
Trade Processing (ITP) suite of services to accelerate trade
processing as the industry sets its sights on the U.S. move to a
T+1 settlement cycle on May 28, 2024.
Sumitomo Mitsui Trust Asset Management has adopted DTCC ITP’s
CTM, including CTM’s Match to Instruct (M2i) workflow as well as
leveraging TradeSuite ID, ALERT, and Settlement Instruction Manager
to fully automate their post-trade processing and support the
achievement of same day affirmation (SDA) for cross-border
transactions within the APAC region. Sumitomo Mitsui Trust Asset
Management is the first Japanese asset management firm to adopt ITP
services through Nomura Research Institute’s (NRI) SmartBridge
Advance, an offering made possible through collaborative efforts
between DTCC and NRI.
“We are pleased to adopt DTCC’s ITP suite of services,” said
Yosuke Hosokawa, Sumitomo Mitsui Trust Asset Management. “As the
U.S. transitions to T+1 settlement, it is important that financial
markets outside the U.S. leverage automation to enable straight
through processing and align with global standards. We are happy to
collaborate with the wider industry to bring accelerated settlement
to our clients.”
To achieve accelerated settlement, firms need to complete
post-trade agreement and affirmation faster. This can be achieved
by automating the allocation, confirmation, and affirmation
processes. CTM, DTCC’s platform for the central matching of
cross-border and U.S. equity and fixed income transactions,
automates the trade confirmation process. CTM’s M2i workflow
leverages the central matching capabilities of CTM, as well as SSI
enrichment via ALERT. With this workflow, which includes
affirmation options depending on the broker’s setup, trades that
are allocated, confirmed, and matched by the institutional investor
and its brokers in CTM will automatically trigger trade affirmation
and delivery of instructions for Depository Trust Company
(DTC)-eligible securities directly to the U.S. depository for
settlement. When combined with Settlement Instruction Manager,
which automatically generates and sends settlement instructions to
custodians and interested third parties, users can more effectively
manage and monitor the lifecycle of a trade through to settlement
finality.
In Japan, regulatory mandates require appointed trust banks to
oversee their underlying investment managers’ trading activities
and be included in the pre-settlement, post-trade communications
chain. Settlement Instruction Manager enables the “soto-soto”
arrangement with trust banks where investment managers send
settlement instructions directly to their custodians simultaneously
with the trust banks. The trust banks are given a copy of the
settlement instructions for record keeping purposes. This helps
enable the achievement of SDA and T+1 settlement within the APAC
region. Sumitomo Mitsui Trust Asset Management is the first
regional asset management firm to utilize the soto-soto arrangement
among DTCC’s ITP clients.
“We are pleased to partner with Sumitomo Mitsui Trust Asset
Management to bring best practice capabilities that enable
accelerated settlement in the region,” said Val Wotton, Managing
Director and General Manager, DTCC Institutional Trade Processing.
“As we look toward the U.S. move to T+1, achieving faster time to
settlement for both cross-border and domestic transactions is more
important than ever. ITP’s suite of services is uniquely positioned
to enable counterparties to reach settlement finality faster while
seamlessly connecting them to thousands of counterparties around
the world.”
About DTCC
With 50 years of experience, DTCC is the premier post-trade
market infrastructure for the global financial services industry.
From 20 locations around the world, DTCC, through its subsidiaries,
automates, centralizes, and standardizes the processing of
financial transactions, mitigating risk, increasing transparency,
enhancing performance and driving efficiency for thousands of
broker/dealers, custodian banks and asset managers. Industry owned
and governed, the firm innovates purposefully, simplifying the
complexities of clearing, settlement, asset servicing, transaction
processing, trade reporting and data services across asset classes
and bringing increased security, enhanced resilience and soundness
to financial markets. In 2022, DTCC’s subsidiaries processed
securities transactions valued at U.S. $2.5 quadrillion and its
depository subsidiary provided custody and asset servicing for
securities issues from over 150 countries and territories valued at
U.S. $72 trillion. DTCC’s Global Trade Repository service, through
locally registered, licensed, or approved trade repositories,
processes more than 17.5 billion messages annually. To learn more,
please visit us at www.dtcc.com or connect with us on LinkedIn, X,
YouTube, Facebook, and Instagram.
Additional Information
Learn more about CTM – Match to Instruct Workflow
Access spokesperson bio and photo.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240417225623/en/
DTCC Madiha Arsalan +1 813 470 2217 marsalan@dtcc.com US
Eric Hazard, Vested +1 917 765 8720 eric@fullyvested.com Europe Ana
Reynaud +44 (0) 7866 202 656 ana.reynaud@greentarget.co.uk Asia
Corinne Lee, DTCC +65 6805 8033 clee2@dtcc.com