The US Depository Trust & Clearing Corporation (DTCC) has signed Citigroup, Deutsche Bank, Goldman Sachs, JPMorgan Chase and Morgan Stanley to its new over-the-counter (OTC) equity derivatives matching and confirmation service.
The new service, to be launched next month, will provide real time matching and confirmation of OTC equity index options and share options and will allow participating firms to automate processing of new trades, full or partial terminations, increases, amendments and exits.
DTCC says the system will reduce risks and costs and allow users to instantly correct any mismatches.
Commenting on the new service, Dave Berry, global head of equity derivative operations at Goldman Sachs, says: "We are constantly driving to reduce operational risk and increase efficiency in our business, signing up to DTCC for electronic trade confirmation for equity derivative transactions is another step forward."
The system is part of the DTCC's Deriv/SERV automated matching, confirmation and settlement services for the OTC derivatives marketplace. The DTCC is also planning to launch a service for interest rate swaps and swaptions before the end of the year, as well as major enhancements to its payment reconciliation systems.