Higo Bank is applying Institutional Trade Processing (ITP) solutions to its middle and back-office systems.
Japanese firm Higo Bank is advancing the automation of its middle and back office systems via the implementation of the Depository Trust & Clearing Corp.’s Institutional Trade Processing (ITP) solutions, which will help the firm advance to no-touch processing across domestic and cross-border transactions, officials say.
Higo Bank, a regional bank in Kumamoto Prefecture, will be deploying the DTCC’s CTM platform to centrally match cross-border and domestic equity and fixed income transactions, and to automate the trade confirmation process, officials say. The deployment also includes CTM’s Match to Instruct (M2i) workflow, which leverages the matching capabilities of CTM; Standing Settlement Instruction (SSI) enrichment via DTCC’s ALERT; and Settlement Instruction Manager.
The deployment is intended “to further automate their equities and fixed income post-trade processing,” officials say.
“With the M2i workflow, trades that are allocated, confirmed, and matched in CTM by the institutional investment manager and their brokers will automatically trigger trade affirmation and delivery of instructions for Depository Trust Company (DTC)-eligible securities directly to the U.S. depository for settlement,” according to the announcement. “When used in conjunction with Settlement Instruction Manager, users can automatically generate and send settlement instructions to custodians and other third parties.”
“The global focus on shortening settlement cycles, as well as the need to comply with the operational risk measurements set by the Basel Accords to enhance internal controls and strengthen human capital, has made straight through processing essential across operational workflows, from trade execution to settlement,” says Kazuyoshi Uchiyama, senior executive officer and general manager of financial markets division, Higo Bank, in a prepared statement. “At the same time, increased volumes and manual processes create risk and lengthen settlement processes.”
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