Goldman praises DTCC for 99% same-day settlement rate ahead of T+1 in US

“We were pleased to validate through our analysis that our settlement efficiency strategy, supported by CTM’s M2i workflow, has resulted in a significant reduction in settlement fails for our clients.”

Goldman Sachs has significantly improved its post-trade processing efficiency by levereaging CTM’s Match to Instruct (M2i) workflow from DTCC.

According to DTCC data, Goldman Sachs attained a remarkable achievement with over 99% of its transactions being affirmed on the same day in Q4 2023. In the same period there was a 38% decrease in exceptions for same-day affirmations and a 64% reduction in US settlement fails by value.

T+1 settlement cycle goes live May 28, 2024

As the industry moves towards a T+1 settlement cycle, set to commence on May 28, 2024, the focus on automating and refining post-trade processes has intensified.

Goldman Sachs, a self-clearing broker-dealer, implemented the M2i workflow in the last quarter of 2022 as part of its strategy to enhance settlement efficiency and streamline the post-trade experience for its clients.

CTM’s M2i workflow is designed to boost same-day affirmation rates for DTC-eligible securities by facilitating a direct match between investment managers and executing brokers. This system offers central matching and automatic affirmation capabilities, which are more efficient than the traditional methods used by custodians. As a result, most investment managers using M2i can achieve nearly 100% affirmation rates by 9:00 PM ET on the trade date, meeting the strict T+1 settlement requirements.

The firm’s impact analysis highlighted the benefits of same-day affirmations and the role of M2i in achieving higher operational efficiency and a better client experience.

“Significant reduction in settlement fails”

Risa Lederhandler, Global Head of Equities and Securities Services Operations at Goldman Sachs, said: “Automation is a key enabler of operational efficiency and enhanced client experience. We were pleased to validate through our analysis that our settlement efficiency strategy, supported by CTM’s M2i workflow, has resulted in a significant reduction in settlement fails for our clients. We found that M2i’s process increased affirmation rates by 9pm ET on T, a key objective as we prepare for the move to T+1. In addition, the M2i platform’s enhanced SSI enrichment capabilities resulted in more settlements occurring without additional input from our Operations teams. As the industry continues to prepare for T+1, we are focused on further increasing our automation of allocations in the US market. M2i is core to this objective.”

Val Wotton, Managing Director and General Manager of DTCC Institutional Trade Processing, commented: “It is exciting to see Goldman Sachs’ results from leveraging CTM’s M2i workflow, a critical enabler of T+1 that helps to significantly reduce trade fails and facilitates straight-through processing. Clients utilizing M2i benefit from a significant increase in SDA rates for DTC-eligible trades, ultimately reducing costs related to trade fails, exception resolution costs, and operational friction. We are pleased to provide these benefits to the financial services industry.”



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