Sumitomo Mitsui Trust Asset Management has adopted DTCC’s Institutional Trade Processing (ITP) suite, making it the first Japanese asset manager to fully automate post-trade processing and be able to achieve same-day affirmation (SDA) for cross-border transactions in the APAC region.
The company now has access to DTCC ITP’s central trade matching (CTM) Match to Instruct (M2i) workflow, TradeSuite ID, ALERT and Settlement Instruction Manager solutions. These are being introduced to accelerate trade processing in advance of the US T+1 transition.
The adoption was made possible through DTCC’s existing collaboration with Nomura Research Institute, which offers access to the ITP suite through its SmartBridge Advance service.
DTCC’s Settlement Instruction Manager enables a ‘soto-soto’ agreement with trust banks, in which investment managers send settlement instructions to their custodians simultaneously with the trust banks, with the latter given a copy of the settlement instructions for their records. Sumitomo Mitsui Trust Asset Management is the first of DTCC’s ITP clients to use this arrangement.
Japanese regulatory mandates require appointed bank trusts to oversee underlying investment managers’ trading activities and to be involved in the pre-settlement, post-trade communications chain. Using these solutions, users will be able to more effectively manage and monitor a trade’s lifecycle to settlement finality, DTCC said.
Yosuke Hosokawa, associate general manager at Sumitomo Mitsui Trust Asset Management, said: “As the US transitions to T+1 settlement, it is important that financial markets outside the US leverage automation to enable straight through processing and align with global standards. We are happy to collaborate with the wider industry to bring accelerated settlement to our clients.”
Val Wotton, managing director and general manager at DTCC ITP, added: “Achieving faster time to settlement for both cross-border and domestic transactions is more important than ever. ITP’s suite of services is uniquely positioned to enable counterparties to reach settlement finality faster while seamlessly connecting them to thousands of counterparties around the world.”
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