ADP Brokerage Services Group, a division of Automatic Data Processing, Inc. (NYSE: ADP), announced today that its Brokerage Processing Services (BPS) division has enhanced its trade processing platform to interface with the Depository Trust & Clearing Corporation (DTCC) Real Time Trade Matching (RTTM) application for Corporate and Municipal bonds and Unit investment trusts (CMU).
RTTM enables firms to match trades soon after execution, achieving 100% matching on trade date.
As of August 20, the BPS division successfully completed all mandated Fixed Income Clearing Corporation (FICC) testing. FICC is a DTCC subsidiary. The FICC enhanced RTTM for CMU trades by establishing a single pipeline to facilitate both trade comparison for clearing purposes and regulatory requirements to the MSRB in real-time. ADP's implementation includes both inter-dealer and customer transactions to RTTM via real-time interactive messaging.
The RTTM functionality allows trade comparisons in real time and provides multiple messaging formats and communications links with various entities for fixed-income processing. The implementation of RTTM facilitates straight through processing and mitigates the risks associated with end-of-day trade submissions. In addition, clients have the ability to comply with MSRB real time regulatory price reporting requirements which are scheduled to take effect in January 2005.
"ADP worked very diligently on this project and was very focused through the testing right up to the point of implementing their client base on the platform," said Sean Delap, Vice President, FICC. "Embarking on a project of this magnitude and seeing it through successfully demonstrates ADP's commitment to provide their clients with a reliable and flexible solution that meets the requirements of today's market for real-time trade matching."
"Utilizing RTTM as the single pipeline for fixed-income transaction clearance and regulatory reporting not only promotes straight through processing but maximizes the technology to provide greater efficiencies to the industry," said Marianne Brown, Senior Vice President and General Manager, ADP Brokerage Processing Services. "ADP is a strong advocate of STP and in delivering technologies that will help our clients achieve their financial goals and fulfil their regulatory requirements," she added.
ADP's Brokerage Processing Service supports real-time processing of North American equities, options, mutual funds and fixed-income securities. BPS handles everything from order management to clearance and settlement, regulatory reporting and other back office requirements.