The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, announced that BNP Paribas and J.P. Morgan have joined CTM’s automated tri-party matching workflow for prime brokers, which streamlines trade communications between Hedge Funds, Prime Brokers and Executing Brokers. The CTM workflow brings even greater levels of efficiency to the global markets as the UK, EU, Switzerland and Liechtenstein prepare for the move to T+1 settlement by October 2027.

Today, many Prime Brokers often receive trade details from Hedge Funds in various formats and at different times which can extend to T+1, causing delays in post-trade processing. CTM’s tri-party matching capabilities standardize and automate the delivery of Hedge Fund trade files to Prime Brokers, ensuring timely communication of trade details and enabling a seamless and efficient trade processing flow. Specifically, the workflow utilizes CTM’s automated central matching functionality, supplying Prime Brokers with a golden copy of transaction details when a trade match occurs between a Hedge Fund and an Executing Broker, enabling real-time standardization and automation to the trade allocation process. Both firms have signed on to go live by the end of 2025.

“We are excited to have BNP Paribas and J.P. Morgan adopt CTM’s tri-party workflow as Prime Brokers,” said Val Wotton, DTCC Managing Director and Global Head of Equities Solutions. “This is a pivotal step in further automating and accelerating settlement processes, and we anticipate it will greatly enhance automation for Prime Brokers in EMEA and globally as additional financial markets transition to a T+1 settlement cycle.”

The workflow:

• Synchronizes the automation of trade communication to all Prime Brokers
• Provides automated real-time trade notifications
• Identifies Prime Broker recipients intelligently via the golden source SSI database
• Increases the use of PSET matching through CTM to reduce settlement risk
• Enriches transactions in CTM with ALERT SSIs, offering enhanced transparency in settlement instructions
• Supplies a golden trade copy that has been pre-matched by the Hedge Fund and Executing Broker

“Joining DTCC’s CTM tri-party matching workflow as a Prime Broker aligns with BNP Paribas continuing commitment to deliver the best in class experience for our clients,” said Wayne Howard, Global Head of Prime Brokerage Operations Client Services. “This solution will enable us to further enhance post-trade processing as we work towards ensuring support for T+1 settlement across markets.”

“DTCC’s initiative to incorporate CTM into the Prime Broker environment will enable our teams to optimise post-trade processes, emphasising accuracy and speed, which will drive efficiencies for our clients,” said Anthony Fraser, Global Head of Prime Financial Services Operations at J.P. Morgan. “As a client-centric business, we are dedicated to supporting innovative solutions that enhance the client experience and maintain our service quality, at scale.”

CTM is DTCC Institutional Trade Processing’s central matching service for cross-border and domestic transactions across multiple asset classes. Today, there are 6,000+ clients in more than 89 countries using CTM to streamline workflows.

Source; DTCC