BNP Paribas and J.P. Morgan Adopt DTCC's Automated Tri-Party Matching Workflow

Strategic Insights -

BNP Paribas and J.P. Morgan, two prominent financial institutions, have joined forces with the Depository Trust and Clearing Corp. (DTCC) to adopt its CTM automated tri-party matching workflow for prime brokers. This strategic move is in preparation for the transition to T+1 settlement across the UK and Europe, which is set to begin in October 2027. The workflow aims to streamline trade communications between Hedge Funds, Prime Brokers, and Executing Brokers, reducing delays and increasing efficiency in post-trade processing.

Key Takeaways:

  • BNP Paribas and J.P. Morgan have signed on to adopt DTCC's CTM automated tri-party matching workflow for prime brokers, with both firms planning to go live by the end of 2025.
  • The workflow standardizes and automates 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.
  • The CTM tri-party matching workflow utilizes DTCC'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.
  • The workflow synchronizes the automation of trade communication to all Prime Brokers, provides automated real-time trade notifications, and identifies Prime Broker recipients intelligently via the golden source SSI database.
  • As part of their commitment to delivering the best-in-class experience for clients, BNP Paribas and J.P. Morgan believe that this initiative will enable them to further enhance post-trade processing and support T+1 settlement across markets.
  • DTCC's CTM is used by over 6,000 clients in more than 89 countries, and the firm processed securities transactions valued at U.S. $3 quadrillion in 2023, with DTC providing custody and asset servicing for securities issues valued at U.S. $85 trillion.

Statistics:

  • 6,000+ clients in more than 89 countries use DTCC's CTM service to streamline workflows.
  • DTCC processed securities transactions valued at U.S. $3 quadrillion in 2023.
  • DTC provided custody and asset servicing for securities issues valued at U.S. $85 trillion in 2023.
  • The CTM tri-party matching workflow aims to reduce settlement risk through the use of PSET matching, increases transparency in settlement instructions through ALERT SSIs, and supplies a golden trade copy that has been pre-matched by the Hedge Fund and Executing Broker.

Sources:

  • https://www.dtcc.com/news/2025/september/09/automated-tri-party-matching-workflow-for-prime-brokers
  • https://www.dtcc.com/about (DTCC About Us page)