NEW YORK - S&P Global Market Intelligence, a division of S&P Global (NYSE: SPGI), has announced a collaboration with the Depository Trust & Clearing Corporation (DTCC) to enhance the post-trade settlement process for financial markets. This partnership aims to link S&P's Onboarding Accelerator with DTCC's ALERT system to provide greater transparency and reduce settlement failures in anticipation of the new T+1 settlement requirements in the United States.
The integration of these systems will enable users of Onboarding Accelerator to check the status of standing settlement instructions (SSI) at any point during the account opening or trading process. This capability is expected to decrease trade breaks and settlement fails, thereby supporting the shift towards a T+1 settlement cycle, where trades are settled one day after the transaction date.
Brittany Garland, Head of Regulatory & Compliance for Enterprise Solutions at S&P Global Market Intelligence, emphasized the benefits of this collaboration, stating that it will "streamline a manual, antiquated process, maximizing efficiency and minimizing trade settlement failures." Bob Stewart, DTCC Executive Director of Institutional Trade Processing, also highlighted the importance of connecting client reference data with SSI instruction statuses to prevent settlement delays.
The Onboarding Accelerator is an automated solution used by various players in the financial industry, including brokers and fund managers, to integrate entity data, document collection, and other operational setups. DTCC's ALERT, with over 3,500 organizations in its global community, is a database for the communication of account and SSI information, aiming to reduce risk and provide reliable data.
The integration of these services is expected to go live in the first half of 2024 and is part of the broader efforts by S&P Global Market Intelligence and DTCC to support their clients with the upcoming tightened settlement requirements in the U.S. This announcement is based on a press release statement.
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