ALERT: Removing a Party from the Chain

Wherever a client operates with three levels of clearing in a market, DTCC recommends that you populate data relating to all levels in ALERT. While DTCC encourages you to complete information for all levels on ALERT, it is understood that you might not require them for your own workflows or that your counterparties might not require them. Feedback from some broker/dealers and investment managers has shown that some clients require the population of only a minimum amount of information. In this case, clients agree that the information in Table 6 is mandatory:

Table 6  Minimum mandatory settlement data

Party/Role	Account Number
Entity with relationship with the local agent	Account number at local agent
Local agent	Account number at depository
Central securities depository	PSET

For example, assume that Capital Group enters data on ALERT that includes the minimum number of parties required. In this instance, the ALERT instruction includes only the three parties noted in Table 6 . Details from Union Bank of California (Capital Group’s global custodian) are not included; the Bank of New York data is incorporated instead because it has the direct relationship with Banque Paribas, as shown in the next table:

Table 7  Example of Minimum Mandatory Settlement Data

Role	Entity	Account Number
Buyer/seller
Security correspondent	Bank of New York, New York	ABCD
Local agent	Banque Paribas, Paris	XYZ
PSET	Euroclear France	00987