JP Morgan and BNP Paribas Adopt DTCC’s Tri-party Matching Workflow

BNP Paribas and JP Morgan are preparing to go live with the Depository Trust & Clearing Corporation’s (DTCC) CTM automated tri-party matching workflow for prime brokers by the end of 2025.  According to a story in The Trade news, the move is aimed at simplifying communications between hedge funds, prime brokers, and executing brokers, while reducing delays and operational risk. It comes as markets across the UK, EU, Switzerland, and Liechtenstein prepare for the shift to a T+1 settlement cycle by October 2027. Currently, prime brokers often receive trade details from hedge funds in different formats and at varying times, which can extend into T+1 and slow post-trade processing. CTM’s workflow standardizes and automates the delivery of trade files, providing prime brokers with a “golden copy” of transaction details once a trade is matched between a hedge fund and an executing broker. This allows allocations to be processed in real time, improving efficiency and transparency across the post-trade chain. The adoption reflects CTM’s role in supporting post-trade processes. By standardizing trade communications, automating notifications, and providing a centralized source of pre-matched trade information, the workflow is designed to help reduce settlement risk and improve operational efficiency.