Settlement Instruction Manager

Driving straight through processing via the automatic transmission of settlement messaging.

• Overview

  DTCC’s Institutional Trade Processing’s Settlement Instruction Manager enables clients who use CTM^® to achieve straight through processing of matched trades through the automatic creation and transmission of settlement messages in industry standard formats. Through the Settlement Instruction Manager user interface, users can automatically generate and send messages to up to 15 predetermined recipients for each settlement instruction, such as custodians, depositories, fund administrators, legal departments, valuation agents, Japanese Trust Banks, Master KAGs, underlying clients, and other interested parties. The message can be a formal instruction or a COPY message.

  Settlement Instruction Manager Messages can be formatted and submitted as:

  1. SWIFT MT54x via the SWIFT network and/or
  2. CSV format via sFTP

  By utilizing Settlement Instruction Manager trading parties and settlement agents enjoy the benefits of a centralized platform and standard industry interface. Users configure profiles from a combination of fields to determine when to create and/or release settlement instruction messages. Messages can be created for different recipients according to field combinations including Account ID, Currency, Place of Settlement (PSET), Type of Financial Instrument, CTM matching status, etc. The messages can be released automatically or manually, including options to create settlement instruction messages for allocations that are not yet matched on the CTM platform or for records where the counterparty is not using the CTM service.

• Benefits

  • Optional real-time enrichment of settlement instructions with SSIs from ALERT®, the industry’s largest and most compliant web-based global database for the maintenance and communication of standing settlement and account instructions.
  • Controlled implementation of settlement instructions by fund, settlement location, settlement depository, security type and settlement agent.
  • Enables users to preview the formatted MT54x message prior to release.
  • Audit inquiry on all messages sent on the user’s behalf.
  • Send up to 15 SWIFT messages or comma delimited CSV files for each settlement instruction to interested third parties.
  • Ability to view, amend, release, cancel, and stop settlement instructions via the Instruction Manager user interface.
  • Configure a manual or automatic release method, which can be over-written on a per allocation basis. The ability to release settlement instructions before the trade is fully matched in shorter settlement markets.
  • Send settlement instructions for allocations where the counterparty is not currently connected to CTM.
  • Ability to include Universal Transaction Indicator (UTI) on outbound settlement instruction.
  • Display settlement status history within the user interface.
  • Ability to consume settlement status back from Custodians to track status of trade through to settlement.

• How it Works

  Users configure profiles from a combination of fields to determine when to create and/or release settlement instruction messages. Messages can be created for different recipients according to field combinations including Account ID, Currency, Place of Settlement (PSET), Type of Financial Instrument, CTM matching status, etc. The messages can be released automatically or manually, including options to create settlement instruction messages for allocations that are not yet matched on the CTM platform or for records where the counterparty is not using the CTM service.