The Depository Trust & Clearing Corporation

THE PATH TO NO-TOUCH PROCESSING
ITP BEST PRACTICES SCORECARDOVERVIEWIn an effort to increase client satisfaction and drive down costs, there is increasing demand for Operations staff to achieve an optimal
no-touch processing workflow, while at the same time adhering to constant regulatory change and risk management guidelines. For
example, Settlement Discipline Regime (SDR) penalties under CSDR will further drive Operations staff to look at all parts of the trade
lifecycle to ensure they have the best chance of successful settlement.
DTCC Institutional Trade Processing’s (ITP) vision is to enable clients to reduce or remove the number of “touches” in the post-trade
lifecycle and leverage consolidated exception and settlement management capabilities to drive settlement finality.
How will clients know their system setup is ideal? By adhering to and maximizing their current use of ITP solutions that enable a no-touch
workflow. The best practices identified below will help clients evaluate where they stand on the journey to re-imagine post-trade
processing, leveraging their current investments in ITP.
The Scorecard addresses each phase of the lifecycle—trade enablement & enrichment, agreement, notification & settlements management, and data analytics. We have defined ITP best practices for each of these phases of a no-touch processing workflow as well as ways
to measure them and where to learn more.

Best Practice Definitions and Measurement Methods

TRADE ENABLEMENT & ENRICHMENTBest PracticeMeasurement

Buy-side: 100% of SSIs maintained by theircustodians or prime brokers

100% of buy-side’s SSIs are maintained by their Custodian
via GC Direct or by the Prime Broker using the ALERT forPB workflow in ALERT

Buy-side: ALERT GCD

Sell-side: ALERT ASSIsT,Broker Lift Out ServiceManage Invalid SSIs UsingSI ScanSI Scan Upload Guide

Submits either ALERT keys or uses AKAS for real-time
ALERT SSI enrichment on 100% of CTM tradesCTM Enrichment Options

100% of access codes or models have an LEI added,
where one exists; 100% of LEIs are valid

Legal Entity IdentifierSell-side: 100% of counterparty SSIs
maintained in ALERT

All available SSIs are retrieved from ALERT

100% SI Scan compliance with all local
market rules

ALERT compliance rate of SSIs is 100%, as shown on
the ALERT homepage once logged in

Buy-side: Just-in-time SSI enrichment from
ALERT of your SSIs highlighting to yourcounterparty your settlement preference

Learn More

Sell-side: Electronically processes settlement
preferences
All LEIs added and validated

ADVANCING FINANCIAL MARKETS. TOGETHER.™

AGREEMENTBest PracticeUses central matching for all their trades andmanages trade exceptions in real-time via an
automated tool

Matches PSET with counterparty in an
automated manner

Measurement
Uses a central matching system like CTM for 100% oftheir trades (domestic and global) and does not perform
duplicative matching

Learn MoreCTM Overview



PSET Matching

Buy-side: 100% of their CTM matching profiles have
PSET matching turned on
Sell-side: 100% of their trades match the IM’s PSET
where IM has PSET matching turned on

Buy-side: Includes a tolerance amount intheir matching profiles to limit exceptions
where possible

Does not use exact match on financial amounts in theirmatching profiles when possible.

Videos: Matching Profiles forInvestment Managers

Buy-side: Either doesn’t use Broker MatchingGroups (BRMGs) or manages their membership

Does not use BRMGs or if used 100% of BRMGs are valid
and only include brokers from the same organization.

Videos: Broker Matching

Buy-side: Uses View Only Broker inapplicable BRMGs & View Instructing Party
Alleged (VIPA)

Existing View Only Broker (VOB) BICs added to allapplicable BRMGs and VIPA subscription is turned on.

Groups (BRMGs)
View only Broker Implementation Guide and Procedures

NOTIFICATION, SETTLEMENTS MANAGEMENT & EXCEPTION MANAGEMENTBest PracticeMeasurement

Uses the authoritative trade record resulting
from the CTM match for instructing theircustodians/agents/CSDs, including counterparty SSIs enriched directly from ALERTITP Settlement Notification user (if buy-side)
ORTakes back CTM Info Settlement Response message andcounterparty SSIs enriched directly from ALERT whenavailable to instruct their custodians/agents/CSDs

Populates PSET and PSAFE according tomarket best practice

Maps PSAFE onto SWIFT when applicable

Sends (Sell-side) or Receives (Buy-side)
pre-settlement and settlement status
messages or settlement confirmation files
and manages settlement exceptions in realtime via an automated tool

Uses DTCC Exception Manager and Settlements
Management or similar automated tool to receive orsend pre-settlement and settlement status messages orsettlement confirmation files

Learn MoreITP Settlement Services
Reference

CBIC Subscription forCTM Users



DTCC Exception ManagerOverview

DATA ANALYTICSBest PracticeMeasurement

Greater than 99% Same Day Agreement> 99% CTM match rate on market trade date

Greater than 90% Block exceptions fixedwithin 1 hour

> 90% of Block exceptions fixed within 1 hourLess than 1% Block touch rate

< 1% of Blocks are touched to resolve exceptions

Sell-side: Greater than 99% Same Day
Block Entry> 99% of sell-side blocks entered on market trade date

Learn More

Benchmarks Trade Analytics
for CTM Reference

Fortunately, most of the ITP no-touch processing vision is already in place today. Maximizing the use of these components by following
the recommended best practices outlined above will enable ITP clients to continue realizing the benefits of their existing investments.
This gives us—and our clients —an advantageous starting point in putting the industry on the path to a no-touch workflow.

FOR MORE INFORMATION
Please email us at solutions@dtcc.com or visit us on the web at www.dtcc.com/ITPAll learning resources can be found at www.dtcclearning.com© 2021 The Depository Trust & Clearing Corporation. All rights reserved.
The services described above are provided under the “DTCC” brand name by certain affiliates of The Depository Trust & Clearing Corporation (“DTCC”). DTCC itself does notprovide such services. Each of these affiliates is a separate legal entity, subject to the laws and regulations of the particular country or countries in which such entity operates. See
www.dtcc.com for a detailed description of DTCC, its affiliates and the services they offer.
Certain DTCC ITP LLC services are subject to regulation by the U.S. Securities and Exchange Commission (“SEC”) and are offered by DTCC ITP Matching (US) LLC (“DTCC Matching”),
which is set out in SEC Release No. 34-44188; File No. 600-32; 66 FR 20494 (April 17, 2001). TradeSuite ID and CTM are services of DTCC Matching and are subject to SEC regulation when used for trades in which either the broker-dealer or its institutional customer is a U.S. entity and the securities in the trade are issued by a U.S. issuer. No other services
offered by DTCC ITP LLC are regulated. 25179-ER012621 • DTCC Public (White)