Japan’s Iyo Bank picks DTCC to automate post-trade services

Japan’s Iyo Bank has tapped the Depository Trust and Clearing Corporation (DTCC) for its institutional trade processing (ITP) services.

DTCC to provide ITP services to Iyo Bank

Through the partnership, the Japanese bank aims to achieve “no touch” post-trade processing for equities and fixed income transactions.

Iyo Bank is the first regional bank in Japan to adopt DTCC’s ITP services, selecting the firm’s CTM, ALERT and Settlement Instruction Manager solutions to streamline and enhance its post-trade processing operations.

CTM, DTCC’s platform for central matching of cross-border and domestic transactions, automates the trade confirmation process for equities and fixed income as well as repurchase agreements (repos). The company claims its ALERT solution is “the world’s largest global database” of SSIs and currently holds over 13 million standing settlement and account instructions.

“Through the adoption of several automated post-trade offerings, Iyo Bank is now able to spend less time and effort on manual processes while enabling transactions to achieve a shorter time to settlement,” DTCC says.

“When combined with Settlement Instruction Manager, which automatically generates and sends settlement instructions to custodians and interested third parties, users can more effectively manage and monitor the lifecycle of a trade through to settlement finality.”

Naoaki Fujita, managing executive officer and general manager of funds operation and securities division at Iyo Bank, adds the partnership will allow the firm to improve its operational risk mitigation capabilities for post-trade processing “while reducing labour resources through the digitalisation of manual, inefficient processes”.

“As a result, we hope to enable our team to focus on more strategic areas that drive our business forward,” Fujita adds.

Established over 45 years ago, DTCC provides post-trade market infrastructure for the global financial services industry. Headquartered in New York, DTCC provides ITP solutions to over 6,000 clients in 52 markets around the world.