State Street’s Collateral+ Business Now Connected to DTCC’s Margin Transit Utility

State Street Corporation, one of the world's leading providers of financial services to institutional investors, announced that its Collateral + business is now connected to DTCC’s Margin Transit Utility (MTU).

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DTCC’s MTU was created to improve settlement efficiency and reduce operational complexity and risk for collateral call processing. The service helps reduce operational risk by standardizing and automating the margin process from the point of agreement through to settlement. It also helps manage credit and liquidity risk by accelerating the distribution of settlement data to the relevant party.

By leveraging MTU, State Street’s Collateral+ business will now be able to more efficiently validate, enrich, settle, report and monitor third party collateral while easily connecting to and sharing information with multiple counterparties on behalf of its clients.

“Given the recent and continuing market volatility, coupled with the final phases of uncleared margin rules (UMR) for over-the counter (OTC) derivatives, an increasing number of our clients are looking to replace manual processes with new tools that focus on automation such as DTCC’s MTU,” said Staffan Ahlner, global head of Collateral+ for State Street.

“We expect this functionally to be essential for our ability to improve operational efficiency and remove unnecessary complexity so that overall risk is mitigated and collateral is ultimately released quicker,”Ahlner added.

Earlier this month, State Street has partnered with Lukka​ to support its private fund clients with collection, standardization, enrichment, reconciliation, processing and reporting related to crypto and other digital assets.