DTCC Teams up with NRI to Provide Post-Trade Automation to Japan

The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, announced a collaboration with Nomura Research Institute (NRI), a leading global provider of consulting services and system solutions, to offer automated central matching capabilities for cash securities transactions in Japan.

Through the partnership, financial institutions in Japan will be able to use DTCC's CTM, a central matching platform used by both buy-side and sell-side clients to centrally match their cross-border and domestic transactions, directly from NRI's SmartBridge Advance to simplify and enhance the post-trade process, shorten users' settlement time, and improve their transaction efficiency.

The cooperation also integrates DTCC ALERT, the industry's largest and most compliant online global database for the maintenance and communication of account and standing settlement instructions (SSI), helping improving accuracy and reducing risk.

As financial firms prepare for the T+1 settlement cycle in the U.S. scheduled for May 28, 2024, there is a growing trend across the industry to increase straight-through processing and automation in the post-trade process, aligning with the upcoming changes and ensuring a smooth transition to the new settlement cycle.

Val Wotton, Managing Director and Head of Institutional Trade Processing at DTCC, said: "We are pleased to partner with NRI in bringing automated central matching services via direct connectivity for both domestic and cross-border transactions to the region. Achieving faster time to settlement for both cross-border and domestic transactions is now more important than ever, as firms around the world prepare for the U.S. move to T+1. As an automated central matching service that connects firms in 52 countries, CTM allows counterparties to reach settlement finality faster while seamlessly connecting them to thousands of counterparties around the world."

This is not the first time DTCC has worked with a Japanese company on post-trade process. Last August, the firm teamed up with Japanese lender Iyo Bank​ to help the bank achieve "no touch" post-trade processing for equities and fixed income transactions.