U.S.A.: Prospective changes : New matching scheme : Update II
In order to mitigate implementation risks, the DTCC has recently published, in Important Notice 0847-13, an amended implementation timeline for its Settlement Matching initiative.
This is further to our Marketflash LM13013, dated 10 April 2013, containing further details on an initiative launched by the Depository Trust & Clearing Corporation (DTCC) to set up a matching scheme, and provides an update to the information.
The amended timeline is as follows:
Phase I - Target 26 July 2013 (no change)
The DTCC will reduce the minimum Receiver Authorised Delivery (RAD) limits:
- For deliver orders, from USD 15 million to USD 7.5 million;
- For payment orders, from USD 1 million to USD 500,000.
The DTCC will publish an Important Notice in July 2013 to confirm this implementation date.
Phase II - Target September 2013 (no change)
The DTCC will enhance the existing RAD functionality to enable participants to establish RAD authorisation limits specifically for stock loan and stock loan return activity.
Phase III - Target July 2014 (six-month extension)
The DTCC will require matching for all value Deliver Order and Payment Order transactions except for affirmed institutional delivery (ID) transactions.
Phase IV - Target September 2014 (six- month extension)
The DTCC will subject all ID transactions to matching.
Our comments
For Phase I, we do not expect any direct impacts for customers as far as CBL services are concerned.
We continue to monitor developments under this initiative very closely and will provide further details as to possible impacts on our customers as they become available.
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