US Trades on CTM - FAQs
- Category: US Trades on CTM - FAQs
Review the sections below for FAQs related to moving US trades from OASYS to CTM.
To learn more about the benefits and details of moving US trade flows to CTM, please visit the DTCC Learning Center, Supporting US Trades on CTM page.
No, TradeSuite ID is not being decommissioned. DTCC confirms will continue to be created, matched and/or affirmed. Having said that, as part of the Match to Instruct (M2i) initiative dealers will begin to rely upon CTM for the creation of the TS ID confirm as opposed to sending confirms into TS ID directly.
OASYS-TradeMatch is being replaced by equivalent functionality on CTM. In the CTM workflow, a version of the match agreed trade details is passed down from CTM to TradeSuite ID for the purposes of auto-affirmation. This allows investment managers to maintain their affirmation rates as they move US trades from OASYS to CTM. Although TradeSuite ID will continue to exist, it will transition from a matching platform to a distribution utility.
- Clients are encouraged to reach out to their OASYS trading systems vendor for questions on CTM connectivity through their platforms
- All CTM Partners already support BASIC US flows today (no step out, option, auto-affirmation requirement)
- Most Partners are educated, engaged and scoping or developing NEW CTM US Flows functionality
- List of all certified CTM partners, can be found here: Supporting US Trades
All clients using a Partner’s OASYS interface should follow these steps:
- Work with DTCC to understand overall migration story, CTM benefits, newest CTM for US Flows features/functionality and CTM pricing
- Contact their OASYS interface provider (Partner) to request CTM connectivity along with US Flows parity features, if required (step outs, options, auto-affirmation)
- Contact OASYS brokers and confirm CTM readiness on their side
- Contact DTCC and enter into a project to migrate OASYS flows over to CTM
All of the most popular trading systems vendors already support an interface to CTM. You can view the list of all the certified OMS partners and outsourcers here.
My firm uses a legacy FIX or MTI interface, will we have to make any changes to our CTM interface to support US trade flow on CTM?
Clients with a legacy FIX or MTI interface and no functionality dependencies on stepouts or options can move their US trades from OASYS to CTM on their existing interface. Clients using a legacy version of FIX or MTI and having a functional dependency will need to upgrade to the current versions of FIX and MTI. The OASYS parity items are not supported on the legacy interfaces.
My firm already has CTM, will we have to make any changes to our CTM interface to move our US trade flow?
75% of clients and 90% of OASYS volume can be migrated to CTM without any change to proprietary or third-party interfaces. Some clients do step outs or equity options on OASYS. This functionality was recently made available in CTM. Clients with this functionality will need to make changes to their proprietary interface to CTM and/or work with their partner who will have to make these changes, in order to take advantage of this new functionality.
Investment managers who have both OASYS and CTM today will be able to eliminate their OASYS base fee when they consolidate US trades on CTM. Ultimately all OASYS clients will be able to eliminate their OASYS interface and related third-party support and maintenance costs.
We have a series of segment specific roadmaps and onboarding guides available on the DTCC Learning Center, Supporting US Trades on CTM page.
For most clients, the best, first step is to place a call into our client contact center or raise a case through our Service Central site. These cases will be routed to the OASYS Migration Team. From there we will answer any questions and setup an integration project as needed.
No, integration fees will be waived during the migration period.
Many clients with access to CTM can begin using it for their US flows today. For those that don’t have CTM and require assistance, our integration professionals are prepared work with you and/or your partners at no cost to ensure a seamless migration. To kick off your migration project, please contact us via ServiceCentral or contact your Relationship Manager directly.
DTCC seeks to enable and incent client migration within the designated retirement period. During the retirement period, no enhancements or upgrades to OASYS, other than regulatory-mandated requirements, will be made. After April 2021 DTCC will work to finalize all OASYS terminations to fully decommission the OASYS system. Any further incentives or penalties are still being determined.
The end-of-life date is October 2021.
As part of a multi-year ITP Strategy, DTCC is looking to eliminate redundant and duplicative platforms and interfaces for clients. Ultimately creating a single integrated platform which will allow clients to access post trade confirmation status and resolve exceptions from matching through to settlement finality.
Supporting US trades via CTM and retiring usage of OASYS, enhances a firm’s ability to leverage the central matching workflow, settlement notification functionality, and ALERT® enrichment available through CTM and is the first step in the evolution to a more seamless, automated trade matching and confirmation platform.
Many buy side clients prefer the central matching workflow, ALERT enrichment, and settlement notification functionality available in CTM. We are currently working with the majority of our buy side clients to begin moving their US trades from OASYS to CTM. Supporting US trades via CTM is the first step in an evolution to a more seamless, automated trade matching and confirmation platform and will be integral to helping dealers continue to connect with buy side counterparties.
There were a few functional parity issues between OASYS and CTM. For example, step outs, listed options, and the OTM workflow were not historically supported in CTM. Development was completed in August 2019 to address parity items between OASYS and CTM.
CTM offers several different connection options including:
Manual Entry User interface
File-based Broker Batch solutions via Message Translation Interface (MTI)
XML messages via a Direct or MQ-based Push interface
All of the automated options listed above are available through existing third-party partner interfaces. Many of our partners support both OASYS and CTM already so, migrating traffic from one interface to the other should be a light lift for the underlying client.
CTM supports all of the asset classes that OASYS does.
I have yet to be approached by my counterparties, is there a way for me to see who is actively utilizing CTM for US flows?
Yes, we are currently maintaining a list of all buy and sell side clients who are actively supporting US trades on CTM. This list is posted to Service Central - Client Lists.
Today in OASYSTM, short sale/buy cover is indicated as a transaction type choice in addition to Buy or Sell. However, in CTM clients reference how a transaction was traded in the BuySellIndicator field which only supports values of BUYI or SELL. Since all allocations (TradeDetails) within a block are executed the same way, the most efficient way for clients to communicate whether a trade is executed as a short sale/buy cover is to provide this information at the block level.
Taking into account these considerations, the recommended best practice is for clients to communicate a short sale/buy cover by populating SSTI/BUTC in the TradeLevel fieldTradeTransactionConditionIndicator. For clients who also use the CTM Settlement Notification/Third Party Notification functionality, this value also maps to the SWIFT and .csv settlement notifications.
Note: an investment manager can optionally match on this field, however this is not recommended unless they get the agreement of all of their broker/dealers.
Some clients may also choose to populate the TradeDetailSettlementTransactionConditionIndicator field with SHOR/BUTC (Short Sale Indicator / Buy Cover Indicator), however this should only be done after populating SSTI/BUTC in the TradeLevel TradeTransactionConditionIndicator field.
How does automatic trade affirmation help reduce risk and cost for Institutional Trades in the US Market?
Part of the institutional post trade flow for DTC-eligible products (Equities, Corporate Bonds, Municipal Bonds) includes trade affirmation. Trade affirmation is supported by DTCC Institutional Trade Processing’s (ITP) TradeSuite IDTM service which enables institutions to affirm Broker confirmations. TradeSuite ID processes approximately 400 million broker confirmations annually.
For more information please read Automatic Trade Affirmation: Reducing Risk and Cost for Institutional Trades in the US Market.
A match over OASYS requires affirming via DTC. Is affirmation still required once we migrate our US trades to CTM?
The role and value of an Affirmed TradeSuite ID Confirm is unchanged regardless of whether the US trade goes over CTM or OASYS-TradeMatch (OTM). DTCC promotes the value of an Affirmed Confirm as a best practice to leverage the Continuous Net Settlement process (CNS), ID Net, and Predetermined Quantity (PDQ) at the DTCC. OTM clients who move from OASYS to CTM will have their allocations drop automatically from CTM to TradeSuite ID to maintain the automatic matching and Confirm Affirmation process in place today. As clients move from OASYS to CTM we are working to ensure that a client’s affirmation rate is maintained or improved.
Affirmation is an important part of a no touch workflow for DTC-eligible trades. An affirmed confirm triggers an automated settlement process at the DTC. If a confirm is unaffirmed, both the broker and the custodian need to take independent manual steps to effect settlement. If the IM is currently auto-affirming, there are two features which will support high affirmation rates as clients look to move US trades to CTM:
- No Touch Workflow: When the broker supports a no touch workflow they send confirms only into CTM and suppress the submission of confirms into TradeSuite ID. These confirms are propagated out to TradeSuite ID by CTM on behalf of the broker and the status of the confirm reflects the match status of the trade in CTM and user preferences.
- CTM Auto-Affirmation Workflow: For brokers who do not support a no touch workflow, there is new functionality that would allow the IMs allocations to drop from CTM into TradeSuite ID after matching in CTM. This is similar to how OASYS passes allocations to TradeSuite ID today. This second match in TradeSuite ID will allow the confirms to promote to affirmed. If the allocation mismatched in TradeSuite ID, the IM could use TradeSuite ID Web to identify the problem and address it upstream in CTM.
Yes, OASYS-only Investment Managers will need to sign a CTM schedule. If you already have access to CTM in your organization, you do not need to sign an additional schedule to support US trades on CTM.
Over 300 brokers support US trades on CTM. View a list of all the brokers via Service Central - Client lists. We are actively working with OASYS brokers who do not use CTM for US trades. It should be noted that if you continue to trade US securities with a non-CTM OASYS broker, you will continue to send allocations through OASYS for that broker counterparty until they implement CTM . ITP recommends talking to your brokers to ensure they are taking steps to support US trades on CTM. Once all your brokers support CTM, you can discontinue using OASYS and leverage the full benefits of a single global platform.
I trade several different types of fixed income trades on OASYS, will these brokers be available on CTM?
The list of brokers supporting CTM includes details on the asset classes they support.
Brokers on CTM are identified with a BIC, not an OASYS Acronym. As you look to route trades to a CTM vs OASYS broker, you need to identify both yourself and your counterparty using a BIC. You can view a list of all the dealers who are currently supporting US trades on CTM and their identifiers on Service Central - Client Lists.
US trades on CTM will follow the same workflow for trade submission and matching as non-US trades in CTM. There are however several best practices to support high quality data and straight through processing for US trades on CTM. For example, the use of broker matching groups for US trades is discouraged. More information on how to do this is available here.
Yes, the same US Settlement Instructions from ALERT will be enriched on allocations in CTM. For OTM clients moving to CTM, US SSIs in ALERT will be leveraged to send the trade from CTM into TradeSuite ID. The investment manager, or preferably their Global Custodian, needs to provide US SSIs following the ALERT Best Practices for US. Likewise, the broker must setup broker delivery instructions in ALERT following best practices. If they aren’t currently leveraging ALERT enrichment in CTM, they should review how ALERT Key Auto Select(AKAS) can facilitate the process
Since I'm an OASYS-TradeMatch (OTM) client today, will my allocations flow down to TradeSuite ID when I move to CTM?
In order to sustain high affirmation rates for IMs as they move US trades to CTM, ITP has rolled out CTM auto-affirmation functionality which, like OTM, will allow allocations in CTM to flow down into TradeSuite ID after the trade is Match Agreed in CTM. This is an interim step while brokers move to an optimal no touch workflow. When utilizing an optimal no touch workflow, CTM will pass the confirm into TradeSuite ID on behalf of the broker rather than requiring the broker to send it directly via a second interface.
Will US trades on CTM cost more than OASYS? Will there be a financial impact to my sell side clients if I move to CTM?
To support and encourage our investment manager community in moving their US domestic trade volume from OASYS into CTM, ITP is waiving onboarding charges and implementing harmonized pricing across our OASYS and CTM products. The harmonized rates for investment managers and brokers will be rolled out July 1, 2019.
All OASYS-only brokers are being asked to support US trades. DTCC has reached out proactively to each OASYS-only dealer to inform them of this initiative and to simplify and reduce the cost to support US trades on CTM.
Depending on the interface option you choose, you can be up and running in under 2 weeks. We have established a dedicated team of resources to help you support US trades on CTM as quickly as possible. In addition to an expedited onboarding process, DTCC ITP is waiving the CTM domestic base fee and onboarding charges for clients migrating from OASYS to CTM and supporting US trades exclusively.
Yes, there is a new schedule for OASYS-only brokers who are looking to take up CTM. If you already have access to CTM in your organization, you do not need to sign an additional schedule to support US trades.
Will US trades on CTM cost more than OASYS? Will there be a financial impact to my buy-side clients if I move to CTM?
DTCC ITP is waiving the CTM domestic base fee and onboarding charges for brokers migrating from OASYS to CTM and supporting US trades exclusively. For brokers utilizing CTM for cross border trading, a standard base fee will be charge.
ITP has harmonized the rates between CTM and OASYS for both Brokers and Investment Managers, the harmonized rates have been rolled out as of July 1, 2019.
On OASYS today I locally match block trades including the ability to match within tolerances that I maintain. In a central match model how will I avoid a significant increase in mismatch exceptions based on low/no tolerance?
To reduce exceptions for US trades on CTM, we have produced a set of CTM Best Practices promoting the use of a USD Match Profile with tolerance matching on deal price and net amount. In addition, we are actively looking to reduce the number of investment managers who hide certain economic value fields on trades.
There are numerous other best practices which will be promoted as investment managers look to move US trades from OASYS to CTM. Primarily, the adoption of functionality aimed at enabling a no touch workflow including but not limited to: ALERT Key Auto Select (AKAS) SSI enrichment on the allocation in CTM, transferring maintenance of ALERT SSIs to the custodian via GC Direct, matching on PSET, and aggregating allocations under the block trade.
Yes, almost all correspondent clearers already have access to CTM. DTCC is working very closely with correspondent clearers to support them as they look to move US trades to CTM.
If you access CTM via your clearer, they have the option to submit confirms directly to TradeSuite ID via CTM.
On OASYS today I have full transparency into block trades alleged against me by the IM, how can I achieve the same transparency via CTM?
We are committed to providing the same level of transparency into block trades via CTM that a broker currently has on OASYS. As IMs migrate traffic from OASYS we are strongly encouraging them to allege these trades against a specific broker BIC as opposed to using a broker matching group (BRMG) as this will facilitate full transparency. Additionally, in cases where this is not technically possible for the IM based on their CTM implementation, we’ve launched the following initiatives:
The CTM View Instructing Party Alleged (VIPA) subscription option is available to Investment Managers and enables sell-side clients to query and/or view blocks alleged against them when an investment manager has utilized a Broker Matching Group (BRMG) identifier which contains a single active broker BIC. The VIPA subscription option creates full visibility earlier in the trade life cycle and provides greater transparency to help expedite the resolution of block shaping discrepancies. The VIPA subscription was turned on for the majority of the CTM buy-side community in January 2019.
DTCC has created a new type of broker entity called a View Only Broker (VOB). The VOB entity grants a CTM broker view only access to unpaired investment manager alleged blocks, where the investment manager used a BRMG to identify the broker. The Investment Manager will need to add the VOB BIC to the applicable BRMG and this allows the VOB to view and monitor UNMATCHED trades alleged against them. The broker will use their normal CTM BIC to modify or process the trade to a MATCH AGREED state.
Additionally, ITP is exploring opportunities to align the way brokers arrange their BICs in CTM (via parent/child relationships) to the way IMs create and maintain BRMGs. This would build upon and enhance the VOB functionality mentioned above.
Yes, CTM generates a Rule 10b10 compliant confirmation using information submitted by the broker as part of the central trade matching process. CTM has a full set of fields to support all the necessary disclosures brokers are required to make under this rule.
As part of the ITP strategy we are focused on reducing and ultimately eliminating the need for a broker to interface with multiple systems. As such we have introduced a no touch workflow that allows confirms submitted to CTM to drop down into TradeSuite IDTM on behalf of the broker. This workflow is currently available.
If you choose not to implement this functionality and enable a no touch workflow then you will need to send confirms directly into both CTM and TradeSuite ID.
A VOB is a Broker BIC that allows a Broker to view unmatched blocks alleged against them when an Investment Manager uses a Broker Matching Group (BRMG) with more than one Broker BIC. The VOB is only used to view trades. CTM Brokers continue to confirm trades as they do today with a non-VOB BIC.
Many Brokers did not code their CTM interface to view unmatched blocks sent by an Investment Manager. As a workaround, some Investment Managers sent files away from CTM, duplicating data already present in CTM, creating redundancies and additional manual effort. Once the CTM Broker has setup a VOB, an Investment Manager, or the ITP Service Bureau on their behalf, needs to add the VOB to the relevant BRMG. As soon as the VOB is added, the Broker can view unmatched alleged blocks. This transparency brings greater efficiency to trade confirmation, especially when the Investment Manager is splitting their blocks.
Learn more about block splitting in this guide: CTM: FAQs: What is Block Splitting?
When an Investment Manager uses a BRMG with more than one BIC, Brokers can only view trades when they are matched or mismatched. Without visibility into unmatched blocks, Brokers are not able to proactively address STP breaks. Instead, such breaks require manual intervention and communication outside of CTM thus slowing trade confirmation and introducing risk.
Investment Managers who add their Broker’s VOB to their BRMG’s will be enabling their Broker’s to view and respond to STP breaks more quickly.
The list of VOBs is viewable in the Client-Facing Dashboard
You can add a VOB to any BRMG in the BRMG Tool by editing the BRMG and adding the new VOB. Please refer to the CTM: View Only Broker Implementation Guide and Procedures for more information.
ITP recommends any CTM Broker with more than one BIC setup a VOB BIC. DTCC is exploring ways to ease the requirement to have Investment Managers manually add a VOB to each BRMG. For example, ITP is reviewing options to automatically add VOBs to BRMGs.