DTCC Launches OTC Equity Derivatives Automated Cashflow Service

The Depository Trust & Clearing Corporation (DTCC) has launched an automated, global over-the-counter (OTC) equity derivatives cashflow matching and netting service (CFM), with all of the 14 major dealers (G14) live on the platform.

The creation and use of the CFM system was part of a commitment the G14 made to global regulators in their 1 March 2010 letter to the US Federal Reserve to strengthen the operational infrastructure of the OTC derivatives market. DTCC’s Deriv/SERV subsidiary was selected as the vendor and launched the service in collaboration with major market participants upon being selected by the industry following a request for proposal (RFP) process managed by the International Swaps and Derivatives Association (ISDA).

“In an environment where risk mitigation is paramount, the OTC derivatives community has placed great priority in promoting improved certainty in the market,” said Lawrence Waller, managing director, JP Morgan. “The new automated cashflow matching and netting process for OTC equity derivatives facilitates seamless and timely settlement. JP Morgan is pleased to be working with the DTCC and our peers to bring such global solutions to market.”


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