Goldman Sachs Boosts Settlement Efficiency with DTCC’s CTM Workflow

Goldman Sachs has achieved improvements in enhancing trade settlement efficiency through the use of Depository Trust and Clearing Corporation (DTCC)’s Central Trade Matching (CTM)’s Match to Instruct (M2i) workflow. according to a story in The Trade news. DTCC said that Goldman Sachs has streamlined its post-trade processes, resulting in a reduction in same-day affirmation (SDA) exceptions and settlement fails in Q4 2023 alone. 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.” According to DTCC, clients using CTM’s M2i workflow will also benefit from central matching and auto-affirmation capabilities, which are typically more efficient than local matching and affirmation by custodians. “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,” said Lederhandler. “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.” DTCC said that majority of CTM investment managers using M2i to match and affirm their US trades achieve a near 100% affirmation rate by 9:00pm ET on trade date, meeting the requirements for US’s impending T+1 settlement deadline on May 28, 2024.