Investment Technology Group (NYSE: ITG) is now using SunGard's Stream Phase3 solution to process institutional equity trades via The Depository Trust & Clearing Corporation's (DTCC) Institutional Delivery Netting Service (ID Net).
SunGard is the first application service provider (ASP) for broker-dealers to offer securities processing support for ID Net, while ITG is the first broker-dealer to use the ID Net service through the Stream Phase3 solution.
ID Net extends the benefits of netting to institutional trade settlement by giving broker-dealers the ability to combine their eligible and affirmed institutional equity transactions with their Continuous Net Settlement (CNS) transactions. This reduces delivery fees and movements to and from accounts, as well as helps to mitigate operational risk and reduce costs across the clearance and settlement process.
A real-time, global multi-asset securities processing solution, Stream Phase3 provides full processing support for ID Net, including real-time functionality to help broker-dealers streamline the clearance and settlement process and reduce exposure. A customer of Stream Phase3 since 2006, ITG began using the system's ID Net processing capability in June 2010.
Stephen Wasserman, director of settlement product management at DTCC, said, "ID Net helps to increase the overall certainty of settlement for matched institutional trades, encourages early affirmation and reduces risk. We're pleased to work with SunGard as the first ASP for broker-dealers to fully support ID Net processing for institutional trades and to help ITG begin realizing the risk mitigation and cost reduction benefits of the ID Net service."
Tony Portelli, managing director and head of operations at ITG, said, "The ID Net capability of Stream Phase3 is particularly useful for institutional broker-dealers such as ITG. With products such as Stream Phase3, SunGard helps us efficiently manage high-volume and high-value institutional trade processing while reducing transaction fees and costs."
Gerry Murphy, president of SunGard's brokerage and clearance business, said, "As the volume of institutional trading grows, the number of steps, risks and costs in the overall clearance and settlement process also increases. We continue to adapt to an ever changing industry, and we are pleased to help ITG become an early adopter of the ID Net service and Stream Phase3's ID Net processing."