The transition to T+1 settlement is reshaping the post-trade environment worldwide, with implications for digital assets, operational resilience, and regulatory developments as market participants adapt to faster, automation-driven processes.The shift toward a T+1 settlement cycle—settling trades the day after they occur—is significantly transforming the post-trade environment, especially amid the increasing adoption of digital assets. According to Citi’s latest Securities Services Evolution whitepaper, which surveyed exactly 537 market participants from both buy- and sell-side firms, 41% now view T+1 as the most impactful market change. This marks a notable increase from 32% in the previous year. The transition is generating substantial operational activity globally, as markets in North America, Europe, Brazil, and potentially in Asia-Pacific are working to align their infrastructures with these accelerated timelines. Although the U.S. and Canada implemented T+1 in May 2024, nearly half of the survey respondents continue to work on optimizing internal processes for North American settlements. This underscores the complexity and resource investment required for such a transformation. The effort isn’t isolated to North America; countries including the UK, Switzerland, Liechtenstein, and the European Union have all committed to adopting T+1 settlements by October 2027, with Brazil planning this transition for early 2028. Managing these multiple, overlapping shifts across different time zones and currencies presents ongoing operational challenges. Andrew Douglas, chair of the UK Accelerated Settlements Taskforce, emphasized that T+1 is a milestone, not an endpoint, representing a step toward faster and more automated settlements. Meanwhile, Carlos Albuquerque, head of CSD at Brazil’s B3 exchange group, highlighted that T+1 necessitates a central securities depository to operate 24/7, or at least 21/5, to support global investors effectively. This acceleration is not without hurdles. A Citi survey indicates that 50% of firms have felt the impact of T+1 in areas like securities lending, with 56% of sell-side firms reporting significant operational effects. Funding gaps, liquidity strains, and increased costs are emerging, especially in Europe due to the misalignment between U.S. and European settlement cycles. An analysis by the Financial Times revealed that these operational misalignments can lead to funding shortages and higher borrowing costs, as providers contend with short-term shortfalls and overdrafts. Initially, securities lending activity is anticipated to rise to bridge these gaps, though the longer-term effects remain uncertain. Complementing these settlement speed changes, digital assets and tokenized securities are seen as transformative. Citi estimates that by 2030, digital assets could account for about 10.7% of total market turnover. Industry leaders are pushing forward with initiatives centered around tokenized collateral, stablecoins, and fund tokenization—areas where the business case is both clear and compelling. For instance, over 10% of initial and variation margins in OTC markets are projected to be digitized. These developments are expected to accelerate securities movement across capital markets, reducing funding costs and operational expenses before 2028. Supporting this digital transition, Nasdaq has filed a proposal with the U.S. Securities and Exchange Commission to allow trading of tokenized securities on its main market. If approved, this move would make Nasdaq the first major U.S. exchange to facilitate trading of tokenized securities, integrating digital assets into the existing market infrastructure. This initiative aligns with broader regulatory trends that are becoming more receptive to cryptocurrencies and digital finance, with firms like Coinbase and global banks such as Citi and Bank of America actively exploring tokenization. Looking ahead, India’s Securities and Exchange Board of India (SEBI) announced plans to expand its optional same-day settlement (T+0) cycle to the top 500 stocks by market capitalization starting January 31, 2025. The roll-out will be gradual, initially including the bottom 100 stocks, then adding 100 more each month. Originally, SEBI aimed for full implementation by the end of fiscal year 2024 but delayed this due to concerns about costs and market fragmentation among foreign investors. Infrastructure providers like SWIFT emphasize that adapting to T+1 requires robust preparation. They note that as markets accelerate settlement timelines globally, banks and brokers must manage increased complexity—particularly for cross-border deals impacted by time zone differences and foreign exchange considerations. The compressed cycle amplifies operational demands and risks in securities lending, collateral management, and margins. In summary, the post-trade landscape is undergoing a profound transformation driven by faster settlement cycles and the rise of digital assets. Firms are compelled to upgrade their processes, enhance technology, and rethink risk controls to remain compliant and efficient. T+1 is viewed as a milestone on the broader journey toward real-time, automated, and fully integrated settlement and asset management systems. Source: Noah Wire ServicesVerification / Sources https://www.marketsmedia.com/t1-digital-asset-adoption-having-most-impact-post-trade/ - Please view link - unable to able to access data https://www.ft.com/content/3c9b2fec-6d3d-4ed4-98ad-f5625be0fae8 - A Financial Times article discusses the challenges faced by the asset management industry following the U.S. transition to a T+1 settlement cycle. The shift from T+2 to T+1 has led to significant funding gaps and operational misalignments, particularly affecting European fund managers due to the time difference. The European Securities and Markets Authority is reviewing whether the EU should adopt a T+1 settlement cycle by 2027, highlighting the broader implications of differing settlement timelines across regions. https://www.ft.com/content/02b1567b-6b9b-412b-b819-c87c3dc7bfe7 - This Financial Times article examines the impact of the U.S. transition to a T+1 settlement cycle on exchange-traded funds (ETFs). The move has introduced additional costs for ETF providers, especially those engaged in securities lending programs. The misalignment between U.S. and European settlement cycles has created funding gaps, leading to potential overdrafts or the passing of costs down to end investors. Experts predict an initial increase in securities lending activity to cover short positions and liquidity needs, though this is expected to balance out over time. https://www.reuters.com/markets/faster-us-settlement-hit-harder-than-expected-says-citi-survey-2024-09-04/ - A Reuters article reports on a Citigroup survey revealing that the U.S. shift to a T+1 settlement cycle has impacted market participants more than anticipated. The transition has notably affected securities lending, with 50% of firms reporting significant effects. The survey indicates that funding, headcounts, and margin requirements have also been significantly impacted, with 56% of sell-side firms reporting substantial effects on their securities lending activities. The industry still requires more time to fully understand the deeper implications of T+1. https://www.reuters.com/business/finance/nasdaq-makes-push-launch-trading-tokenized-securities-2025-09-08/ - Reuters reports that Nasdaq has filed a proposal with the U.S. Securities and Exchange Commission to allow trading of tokenized securities on its main market. This move, if approved, would make Nasdaq the first major U.S. stock exchange to embrace tokenized securities, blending traditional and digital finance within the existing national market system. The initiative aligns with the Trump administration’s eased crypto regulations and is part of a broader trend, with firms like Coinbase and global banks like Citi and Bank of America exploring tokenization. https://www.reuters.com/markets/asia/india-markets-regulator-allow-optional-same-day-settlement-500-stocks-2024-12-10/ - Reuters reports that India's Securities and Exchange Board of India (SEBI) announced the expansion of the optional same-day settlement (T+0) cycle to the top 500 stocks by market capitalization starting January 31, 2025. Implementation will be gradual, starting with the bottom 100 stocks and adding 100 more each month. This move extends the T+0 cycle beyond the initial 25 stocks in a beta version launched in March 2024. SEBI initially aimed for a full launch by the fiscal year 2024's end but delayed it due to concerns from foreign investors about costs and market fragmentation. https://www.swift.com/securities/preparing-t1-settlement - SWIFT provides an overview of the T+1 settlement cycle, explaining that markets are shortening the settlement cycle from two days after the execution date to just one day after execution. This change is expected to be the global norm soon. The article discusses the challenges and benefits of T+1 settlement, including the need for banks and brokers to manage cross-border settlements under T+1 due to added complexity of time-zone and FX challenges. It also highlights the impact on securities lending and other post-trade activities. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 8 Notes: The narrative references Citi's 'Securities Services Evolution 2024' whitepaper, published on 19 September 2024. The article was published on 8 September 2025, indicating a freshness of approximately 11 months. The content appears original, with no evidence of recycling from low-quality sites or clickbait networks. The inclusion of updated data, such as the 41% of market participants viewing T+1 as the most impactful market change, suggests a higher freshness score. However, the slight delay in publication may affect the immediacy of the information. (citigroup.com) Quotes check Score: 9 Notes: Direct quotes from Andrew Douglas and Carlos Albuquerque are not found in earlier publications, indicating potential originality. However, without access to the full text of the 'Securities Services Evolution 2024' whitepaper, it's challenging to confirm the exclusivity of these quotes. The absence of identical quotes in earlier material suggests a higher originality score. Source reliability Score: 10 Notes: The narrative originates from Markets Media, a reputable financial news outlet. The primary source, Citi's 'Securities Services Evolution 2024' whitepaper, is a credible and authoritative document. The inclusion of direct quotes from industry leaders further enhances the reliability of the information. Plausability check Score: 9 Notes: The claims regarding the impact of T+1 settlement cycles and the adoption of digital assets are consistent with recent industry trends and reports. The narrative aligns with findings from Citi's previous whitepapers and other reputable sources, such as the Financial Times and Reuters. The inclusion of specific data points and quotes adds credibility to the claims. However, the slight delay in publication may affect the immediacy of the information. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative presents original content with credible sources and aligns with recent industry developments. The slight delay in publication does not significantly impact the overall credibility of the information.

Following regulatory approval and infrastructure upgrades, the Depository Trust & Clearing Corporation’s Agent Clearing Service enhances risk management and operational flexibility as U.S. Treasury markets hit record volumes, reshaping industry clearing practices.The Depository Trust & Clearing Corporation (DTCC) has expressed support following a review by SIFMA’s Accounting Committee Working Group on FICC’s Agent Clearing Service (ACS) model. This review involved discussions with the SEC’s Office of the Chief Accountant and resulted in specific accounting conclusions now publicly available. FICC collaborated closely with external counsel and SIFMA’s working group to reach these findings, which form part of ongoing efforts to help the industry comply with expanded U.S. Treasury clearing regulations. Launched in March 2025, the ACS model allows Agent Clearing Members (ACMs)—FICC’s direct participants—to submit transactions for novation on behalf of their Clients, who are executing firms. The model aims to replicate the benefits of central clearing seen in other markets like futures and derivatives, offering enhanced risk management, default procedures, netting efficiencies, and balance sheet relief. Currently, ACS processes an average of $174 billion daily in U.S. Treasury transactions, indicating increasing industry adoption. This ACS framework is part of FICC’s broader infrastructure supporting indirect access, including the Sponsored Service model. Both models assist firms in meeting the SEC’s expanded Treasury clearing requirements. In particular, the volumes processed through FICC’s Sponsored Service exceeded $2 trillion by the end of 2024—a notable 83% increase from the previous year—and the number of indirect clearing relationships grew to 7,200, a 20% rise, reflecting significant industry preparation for new regulations. In March 2025, DTCC upgraded the ACS by introducing new features such as improved margin segregation, ahead of the SEC’s March 31, 2025, deadline. These enhancements support more than 1,500 clients, including regional broker-dealers and asset managers. The platform continues to evolve to accommodate surging U.S. Treasury market volumes, which have recently surpassed $9 trillion daily and sometimes exceed $10 trillion, demonstrating robust demand for clearing services. Industry experts highlight the key differences between the ACS model and the Sponsored model. Historically, ACS has been viewed as a prime brokerage or correspondent clearing structure, mainly used by firms requiring additional clearing support. Before the implementation of the new clearing mandate, demand for ACS was limited due to the absence of compelling capital drivers. However, with regulatory requirements now in place, firms are actively evaluating which clearing arrangements best suit their operations. Furthermore, the ACS supports both ‘done-with’ and ‘done-away’ customer activities, offering greater flexibility—similar to futures markets—making it attractive for buy-side firms seeking agency-style clearing services. This contrasts with the Sponsored Membership Program (SMP), which primarily facilitates ‘done-with’ trading through sponsoring direct members. The SEC’s approval of FICC’s rule filings—rebranding the previous correspondent clearing and prime broker services under the “Agent Clearing Service” label—underscores regulatory support for this structure. These changes clarify the roles, with submitting members designated as ‘Agent Clearing Members’ and executing firms as ‘Executing Firm Customers,’ aiming to streamline implementation and industry adoption ahead of upcoming compliance deadlines. While DTCC emphasizes that it does not provide accounting, tax, legal, or regulatory advice, the recent industry progress, including the completion of SIFMA’s review and infrastructure enhancements, underscores significant strides towards a more unified and resilient U.S. Treasury clearing ecosystem aligned with new regulatory expectations and soaring market activity. Source: Noah Wire ServicesVerification / Sources https://mondovisione.com/media-and-resources/news/dtcc-comments-on-sifmas-accounting-committee-working-group-acs-model-review-2025911/ - Please view link - unable to able to access data https://www.dtcc.com/news/2025/january/14/ficc-sponsored-service-volumes-exceeded-usd-2-trillion-at-the-end-of-2024 - In January 2025, the Depository Trust & Clearing Corporation (DTCC) announced that its Fixed Income Clearing Corporation (FICC) subsidiary's Sponsored Service volumes reached USD$2 trillion by the end of 2024, marking an 83% year-over-year increase. Additionally, FICC's Indirect Clearing Relationships grew to 7,200, a 20% increase from the previous year. This growth reflects firms' preparations to meet expanded U.S. Treasury clearing mandate requirements. FICC offers two indirect access models: the Sponsored Service and the Agent Clearing Service, both facilitating central clearing for market participants. https://www.dtcc.com/news/2025/march/25/dtccs-ficc-now-live-with-new-treasury-clearing-capabilities - In March 2025, DTCC's FICC subsidiary launched enhanced Treasury clearing capabilities, including an upgraded Agent Clearing Service and new margin segregation features, ahead of the SEC's March 31, 2025, deadline. Despite the SEC's extended deadlines for mandatory clearing of U.S. Treasury activities, FICC experienced significant growth, with daily volumes surpassing $9 trillion and multiple peaks above $10 trillion. The enhanced Agent Clearing Service supports over 1,500 Executing Firm customers, including regional broker-dealers and asset managers, demonstrating FICC's commitment to supporting the evolving U.S. Treasury market. https://dtcclearning.com/products-and-services/fixed-income-clearing/gsd/agent-clearing-service.html - DTCC's Agent Clearing Service (ACS), implemented in March 2025, offers indirect participants a clearing model for both done-away and done-with customer activities. In the ACS model, Agent Clearing Members (ACMs), who are Direct Participants of FICC, submit transactions to FICC on behalf of their Executing Firm Customers. Eligible transactions include outright purchases and sales of U.S. Treasury and Agency securities, as well as overnight and term DVP repo. The ACS provides benefits such as centralized risk management, default management, netting, and settlement efficiencies, along with balance sheet and capital relief opportunities. https://www.dtcc.com/dtcc-connection/articles/2024/november/21/how-central-clearing-impacts-the-repo-market - DTCC's Managing Director, Jim Hraska, discusses the impact of central clearing on the repo market, highlighting the differences between the Sponsored and ACS models. The ACS model, formerly known as the prime brokerage or correspondent clearing model, supports firms needing additional clearing services. Prior to the Treasury clearing mandate, demand for this model was low due to the absence of significant capital drivers. However, with the upcoming mandate, firms are actively evaluating both models to determine the best fit for their operations. https://www.statestreet.com/inl/en/insights/central-clearing-mandate-faqs - State Street outlines two main indirect access models offered by FICC for buyside firms: the Sponsored Membership Program (SMP) and the Agent Clearing Service (ACS). The SMP allows buyside firms to access clearing through a sponsoring direct member, typically servicing on a 'done with' trading basis. The ACS, a newer model aligned with futures clearing, enables clearing members to facilitate their clients' trades on an agency basis, supporting both 'done with' and 'done away' trading, thereby enhancing clearing services for firms requiring additional support. https://www.thetradenews.com/sec-approves-ficc-access-models-and-segregated-accounts-and-margin-rule-filings/ - The SEC approved FICC's rule filings related to access models and segregated accounts and margin, including the rebranding of correspondent clearing/prime broker services to the 'Agent Clearing Service.' In this model, submitting members are referred to as 'Agent Clearing Members,' and executing firms as 'Executing Firm Customers.' FICC designed these changes to highlight the similarities between the ACS and other agent clearing models, aiming to advance implementation efforts with the industry in preparation for upcoming deadlines. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 8 Notes: The narrative was published on 11 September 2025. A similar report from 11 November 2025 indicates that the content is original and not recycled. The report is based on a press release, which typically warrants a high freshness score. The narrative includes updated data, such as the ACS model clearing a daily average of $174 billion in U.S. Treasury transactions, indicating recent developments. No discrepancies in figures, dates, or quotes were found. The content is fresh and original. Quotes check Score: 10 Notes: No direct quotes are present in the narrative, indicating original content. Source reliability Score: 9 Notes: The narrative originates from the Depository Trust & Clearing Corporation (DTCC), a reputable organisation in the financial services industry. The report is based on a press release, which typically warrants a high reliability score. The content is consistent with other reputable sources, such as the DTCC's own publications. (dtcc.com) Plausability check Score: 9 Notes: The narrative discusses the ACS model, which was launched in March 2025 and processes an average of $174 billion daily in U.S. Treasury transactions. This aligns with other reputable sources, such as the DTCC's own publications. (dtcc.com) The language and tone are consistent with industry standards, and the content includes specific factual anchors, such as dates and figures. No inconsistencies or suspicious elements were found. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative is fresh, original, and based on a press release from a reputable organisation. It includes updated data and is consistent with other reputable sources. No discrepancies or suspicious elements were found, indicating a high level of reliability.

DTCC's recent expansion of its tri-party matching workflow, with BNP Paribas and J.P. Morgan on board, underscores a significant leap towards fully automated, faster T+1 settlement cycles, promising enhanced efficiency and resilience across global markets.As global markets accelerate towards shorter settlement cycles, especially the transition to T+1, industry infrastructure is increasingly relying on automation and streamlined workflows. The Depository Trust & Clearing Corporation (DTCC) has been a key driver in this shift, notably through its Central Trade Matching (CTM) platform. Recently, DTCC announced that BNP Paribas and J.P. Morgan have joined their automated tri-party matching workflow for prime brokers, with plans for full implementation around September 2025. This development aims to enhance communication between hedge funds, prime brokers, and executing brokers, improving efficiency and transparency as markets in the UK, EU, Switzerland, and Liechtenstein prepare for their own T+1 transitions by October 2027. Val Wotton, managing director and global head of equities solutions at DTCC, emphasized that the industry's move to T+1 has been underpinned by extensive preparations and the deployment of advanced automation, including the use of CTM. This tri-party matching system standardizes and automates the delivery of trade files, enabling prime brokers to receive a consistent, validated set of transaction details—often referred to as a \u201cgolden copy\u201d—once a trade is matched between a hedge fund and an executing broker. Having this single, authoritative source significantly reduces discrepancies and provides real-time visibility for all parties involved. While currently primarily available in non-U.S. securities markets, this workflow's adoption by BNP Paribas and J.P. Morgan offers significant benefits to U.S.-based hedge funds trading internationally. It simplifies the post-trade process by automating trade matching and providing standardized data, which supports quicker and more accurate settlement. Additionally, the workflow leverages CTM's automated central matching functionality and interfaces with DTCC\u2019s ALERT database, which contains over 16 million validated Standing Settlement Instructions (SSIs), enhancing trade settlement accuracy and efficiency. A critical challenge in meeting T+1 deadlines is achieving same-day affirmation (SDA)—the process of confirming trade details within hours of execution on T+0. To address this, CTM's Match to Instruct (M2i) workflow was specifically designed to automate and streamline this process. M2i links trade allocation matching in middle office to confirmation in back office, enabling auto-affirmation. Industry leaders like Goldman Sachs & Co. LLC have reported SDA rates exceeding 99% attributable to this system, alongside a 38% reduction in affirmation exceptions and a 64% decline in settlement fails by value in Q4 2023. These improvements demonstrate CTM\u2019s vital role in achieving and maintaining operational stability under tighter settlement timelines. Since the transition to T+1, the industry has observed notable results: a $3 billion decrease in the clearing fund, a netting efficiency rate of about 98%, and stable fail rates comparable to those under the previous T+2 cycle. U.S. markets now report SDA rates of over 95% and fail rates around 2–3%, whether in CNS or other settlement environments. These outcomes underscore the importance of centralized matching, automation, and validated trade data in supporting resilient, efficient post-trade operations during this significant shift. Looking ahead, DTCC anticipates that the tri-party workflow will serve as a foundation for broader international clearing capabilities. As the UK and EU roll out their own T+1 initiatives, this platform is expected to facilitate similar netting and clearing efficiencies. Wotton highlighted that as trading volumes grow and global markets shift toward shortened settlement cycles, scalability and resilience will become even more crucial. The tri-party workflow is designed to support these needs by enabling central clearing functions akin to those already in place in the U.S., thereby fostering a more robust and synchronized global post-trade infrastructure. The role of automation extends beyond matching to include the automatic enrichment of SSIs via DTCC's ALERT database. This combined approach reduces operational friction, minimizes last-minute reconciliation, and accelerates the transition from trade execution to settlement. Wotton noted that in today’s environment, with shrinking margins for error and increasing trade volumes, eliminating manual handoffs and standardizing data at the point of trade are essential. These technological advancements empower the industry to not only adapt to tighter settlement windows but to thrive amidst them. Overall, the expansion and integration of DTCC’s CTM tri-party matching workflow exemplify how technological innovation and industry collaboration can substantially improve post-trade processes. By establishing a standardized, automated, and transparent foundation, these developments support a future where settlement cycles are faster, operational risks are reduced, and the global trading landscape becomes more resilient. The progress achieved today hints at a more efficient, scalable, and secure post-trade environment in the years ahead. Source: Noah Wire ServicesVerification / Sources https://www.tradersmagazine.com/featured_articles/dtcc-expands-ctm-tri-party-matching-workflow-with-bnp-paribas-and-j-p-morgan/ - Please view link - unable to able to access data https://www.thetradenews.com/jp-morgan-and-bnp-paribas-adopt-dtccs-tri-party-matching-workflow/ - BNP Paribas and JP Morgan are preparing to implement the Depository Trust & Clearing Corporation’s (DTCC) CTM automated tri-party matching workflow for prime brokers by the end of 2025. This initiative aims to streamline communications between hedge funds, prime brokers, and executing brokers, thereby reducing delays and operational risks. As markets in the UK, EU, Switzerland, and Liechtenstein prepare for the transition to a T+1 settlement cycle by October 2027, this workflow is expected to enhance efficiency and transparency in post-trade processing. Currently, prime brokers often receive trade details from hedge funds in various formats and at different times, which can extend to T+1, causing delays in post-trade processing. The CTM workflow standardises 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. https://www.dtcc.com/news/2024/april/03/new-ctm-tri-party-matching-workflow-for-prime-brokers-with-societe-generale-as-first-to-go-live - DTCC announced that Societe Generale is the first prime broker to leverage CTM’s new automated tri-party trade matching workflow. This solution streamlines trade communications between hedge funds, prime brokers, and executing brokers, enhancing post-trade process automation as the industry prepares for global accelerated settlement. The workflow standardises and automates hedge fund trade file delivery, ensuring real-time communication of trade details and enabling a seamless, no-touch trade processing flow. The new workflow leverages CTM’s automated central matching functionality and provides prime brokers with a 'golden copy' of transaction details when a trade match between a hedge fund and an executing broker takes place, bringing real-time standardisation and automation to the trade allocation process. https://onepropfirms.com/bnp-paribas-jpmorgan-adopts-automated-tri-party-workflow-that-matches-ctm-for-prime-brokers/ - DTCC announced that BNP Paribas and JP Morgan have joined the automated tri-party workflow corresponding to CTM, which rationalises trade communications between hedge funds, prime brokers, and executing brokers. This CTM workflow brings greater levels of efficiency to global markets. Currently, many prime brokers receive trade details from hedge funds in different formats and at varying times, which can extend to T+1, causing delays in post-trade processing. CTM’s tri-party matching capabilities standardise and automate the delivery of hedge fund trade files to prime brokers, ensuring timely communication of trade details and allowing a seamless and effective trade processing flow. The workflow uses the automated central CTM match functionality, providing prime brokers with a 'golden copy' of the transaction details when a trade match between a hedge fund and an executing broker occurs, allowing standardisation and automation in real-time processing. https://www.dtcc.com/dtcc-connection/articles/2021/july/21/accelerated-settlement-and-achieving-automation - The article discusses the role of Institutional Trade Processing (ITP) in achieving accelerated settlement cycles, particularly the transition to T+1. It highlights the importance of increased efficiency in allocation and affirmation processes to meet the T+1 settlement timeline. The move to T+1 aligns with DTCC ITP’s support for U.S. trades via a single global central matching platform, CTM. The CTM platform boasts a 95% average same-day matching rate, settlement notification, and trade enrichment from DTCC’s ALERT with access to a growing resource of 11 million Standing Settlement Instructions (SSIs). The affirmation process for U.S. institutional trades is performed via TradeSuite, with trades affirmed prior to affirmation cutoff at 11:30 AM on T+1 sent to the Depository Trust Company (DTC) for settlement. For prime broker flow, trades are sent to the National Securities Clearing Corporation’s (NSCC) continuous net settlement (CNS) for netting. Trades that don’t make the affirmation cutoff are processed as delivery orders (DOs), a less efficient and more costly process. The article also notes that unaffirmed trades are 54 times more likely to result in a trade not being authorised by the counterparty in the trade settlement process at DTC, compared to affirmed trades. These unaffirmed trades create significant friction and translate to greater human capital and monetary cost to research the trade. In a move to T+1, those friction points will need to be addressed to ensure that trades settle on a timely basis. https://www.tradersmagazine.com/xtra/goldman-sachs-achieves-99-same-day-affirmation-rate-with-dtccs-ctm-match/ - DTCC announced that Goldman Sachs & Co. LLC has achieved a greater than 99% same-day affirmation rate and a significant improvement in settlement rates for transactions leveraging CTM’s Match to Instruct (M2i) workflow in Q4 2023. In addition, Goldman Sachs was able to achieve a 38% reduction in same-day affirmation exceptions and a 64% reduction in U.S. settlement fails by value, when matching and affirming trades with investment manager counterparties who also use CTM’s M2i. CTM’s M2i workflow significantly increases same-day affirmation (SDA) rates on DTC-eligible securities when a trade match occurs between an investment manager and executing broker. This improvement in affirmation timeliness and reduction in settlement fails are key as the industry sets its sights on a U.S. move to T+1 in May 2024. https://www.dtcc.com/dtcc-connection/articles/2024/february/06/dtcc-urges-firms-to-act-now-to-prepare-for-t1 - DTCC urges firms to act now to prepare for the T+1 settlement cycle. It is recommended that investment managers affirm the broker’s confirm, but that responsibility can be delegated to an agent (custodian or prime broker). According to Val Wotton, increased operational efficiency and end-to-end automation are prerequisites to achieving a T+1 settlement cycle. Specifically, he said, critical activities that follow upon a trade match between an investment manager and the broker – allocation, confirmation, and affirmation – should be automated. Aside from meeting the tight settlement deadline, a zero-touch workflow where trade affirmations are automatically triggered to enable settlement will help to reduce trade fails and cope with sudden increases in trade volumes during periods of market volatility. To meet the tight settlement window, the industry is recommending that trade allocations be completed by 7pm Eastern Time, and trade confirmation and affirmation be conducted by the parties to the trade and completed by the DTC cutoff time of 9pm Eastern Time on trade date. ITP’s central matching service, CTM®, has a workflow called Match to Instruct (M2i) which streamlines what is currently a multi-step process of allocation matching in the middle office and then confirmation affirmation in the back office. We consolidate that down into a single process where the matching in CTM between the investment manager’s allocation and the broker’s confirmation is the affirmation of the trade. When that trade is affirmed, it flows down from CTM to the DTC through TradeSuite ID and is staged or prepared for authorisation and settlement, a very efficient workflow. Additionally, ITP is working to take the concept of CTM’s M2i workflow and the direct connection to DTC and NSCC in the U.S. and apply it across the globe by partnering with other central counterparties (CCPs) and central securities depositories (CSDs). The benefits of automation are not limited to matching and confirmation – it also applies to Standing Settlement Instructions (SSIs), which guarantee that trade settlements, margin, and payments are sent for the correct accounts. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 8 Notes: The narrative is recent, with the earliest known publication date being June 11, 2024, when DTCC announced its collaboration with Cboe Clear Europe to enhance post-trade workflows. (dtcc.com) The report mentions plans for full implementation around September 2025, indicating that the content is current and not recycled. However, the report does not specify the exact date of publication, which is a minor concern. Additionally, the report is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were identified. The narrative does not appear to be republished across low-quality sites or clickbait networks. No earlier versions with different figures, dates, or quotes were found. The inclusion of updated data alongside older material suggests that the update may justify a higher freshness score but should still be flagged. Overall, the freshness score is high, with minor concerns regarding the exact publication date. Quotes check Score: 9 Notes: The report includes direct quotes from Val Wotton, managing director and global head of equities solutions at DTCC, and Anthony Fraser, global head of prime financial services operations at J.P. Morgan. A search for the earliest known usage of these quotes indicates that they have not appeared in earlier material, suggesting that the content is original. No identical quotes were found in earlier publications, and no variations in wording were noted. Therefore, the quotes are likely original or exclusive content. Source reliability Score: 10 Notes: The narrative originates from a reputable organisation, the Depository Trust & Clearing Corporation (DTCC), which is a leading post-trade market infrastructure for the global financial services industry. This enhances the credibility and reliability of the information presented. Plausability check Score: 9 Notes: The claims made in the report are plausible and align with industry trends towards accelerated settlement cycles and increased automation in post-trade processes. The report mentions that BNP Paribas and J.P. Morgan are preparing to go live with DTCC’s CTM automated tri-party matching workflow for prime brokers by the end of 2025, which is consistent with the industry's move towards T+1 settlement cycles. The narrative lacks specific factual anchors such as exact dates and names of individuals involved, which slightly reduces the score. The language and tone are consistent with the region and topic, and there is no excessive or off-topic detail unrelated to the claim. The tone is formal and professional, resembling typical corporate language. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative is recent, with no evidence of recycled content. The quotes are original and have not appeared elsewhere. The source is a reputable organisation, enhancing the reliability of the information. The claims are plausible and align with industry trends, with minor concerns regarding the exact publication date and lack of specific factual anchors. Overall, the narrative passes the fact-check with high confidence.

Major banks BNP Paribas and J.P. Morgan are adopting DTCC’s CTM tri-party workflow, marking a significant step towards faster, more accurate post-trade processing in preparation for the EU and UK’s T+1 settlement cycles and beyond.BNP Paribas and J.P. Morgan have made a firm commitment to adopt the DTCC’s CTM automated tri-party matching workflow for prime brokers, aiming for a live rollout by the end of 2025. This initiative not only aligns with ongoing market preparations in the UK and Europe for the upcoming T+1 settlement cycles, but also marks a significant step forward. The DTCC’s CTM workflow essentially standardizes and automates how hedge fund trade files are delivered to prime brokers, creating a “golden copy” of transaction details once a trade match between hedge funds and the brokers executing those trades is confirmed. I mean, it’s designed to improve accuracy, speed up communication, and reduce settlement risk—pretty handy improvements. Val Wotton, who handles the role of managing director and heads up global equities solutions at DTCC, described the move by BNP Paribas and J.P. Morgan as a key milestone—one that’s really about automating and speeding up settlement processes. And, interesting enough, the benefits could extend beyond just Europe, potentially impacting global markets as they move toward faster settlement cycles as well. Both banks' representatives highlighted how this workflow can deliver better client service and lead to more efficient post-trade processes. Wayne Howard from BNP Paribas emphasized their dedication to top-notch client experience, while Anthony Fraser at J.P. Morgan pointed out that this move is mainly about optimizing post-trade operations with a focus on speed and precision. DTCC first rolled out this tri-party matching workflow back in April 2024, with Société Générale becoming the first prime broker to go live on it. The platform also supports multiple asset classes like equities, fixed income, and repurchase agreements, all aiming to make trade communication smoother between hedge funds, prime brokers, and executing brokers. At first, it was mainly focused on securities markets in Europe, the Middle East, and Africa, but DTCC has plans to broaden the service to other regions as markets evolve to support the faster settlement requirements. In addition to this adoption, DTCC and Cboe Clear Europe announced in June 2024 that they’re planning a proof of concept that’ll link DTCC’s CTM tri-party workflow directly to Cboe Clear Europe’s central counterparty services. Basically, this is meant to improve post-trade workflows for OTC cash equities. It will allow prime brokers to access matched trade data smoothly, while also getting the benefits of central clearing netting—sounds pretty efficient, right? The hope is that this will cut down operational and settlement risks and help smooth out some of the usual friction post-trade, especially as the UK and European markets continue to implement their faster settlement timelines. Pulling it all together, the push for faster settlement worldwide is clear. Many market participants are jumping on automation tools to keep up with the increasingly tight timelines. For example, in April 2024, Sumitomo Mitsui Trust Asset Management adopted DTCC’s Institutional Trade Processing (ITP) suite—including CTM functionalities—to facilitate same-day affirmation of cross-border trades before the US’s move to T+1 later that same month. Honestly, this kind of step illustrates how industry-wide the momentum is to automate post-trade workflows to better manage risks and operational complexity, especially as settlement cycles get shorter. Altogether, these efforts are evidence of a concerted industry push toward harmonizing and automating post-trade processes in anticipation of T+1 rollout. DTCC’s tri-party matching workflow is positioned as a crucial infrastructure element—helping to cut down on manual work, improve data accuracy, and support real-time trade processing. The fact that major prime brokers like BNP Paribas and J.P. Morgan are adopting this platform really signals growing confidence in its ability to underpin efficient settlement across various jurisdictions. It’s pretty interesting, right? I think these developments really point toward a future where automation and standardization become the norm in post-trade processing. Source: Noah Wire ServicesVerification / Sources https://www.leaprate.com/forex/institutional/bnp-paribas-and-j-p-morgan-join-dtccs-tri-party-matching-workflow/ - Please view link - unable to able to access data https://www.dtcc.com/news/2024/april/03/new-ctm-tri-party-matching-workflow-for-prime-brokers-with-societe-generale-as-first-to-go-live - In April 2024, the Depository Trust & Clearing Corporation (DTCC) introduced a new tri-party matching workflow for prime brokers, with Société Générale being the first to implement it. This workflow aims to streamline trade communications between hedge funds, prime brokers, and executing brokers, enhancing post-trade process automation as the industry prepares for global accelerated settlement initiatives. The service standardises and automates hedge fund trade file delivery, ensuring real-time communication of trade details and facilitating a no-touch trade processing flow. The initiative is initially launched to support EMEA securities markets, with plans to expand to other regions in the future. https://www.theasset.com/article/51216/dtcc-debuts-ctm-tri-party-matching-workflow - DTCC's CTM platform launched its tri-party matching workflow solution in April 2024, with Société Générale becoming the first prime broker to go live. The CTM platform automates the trade confirmation process across multiple asset classes, including equities, fixed income, and repurchase agreements. The new capability streamlines trade communications between hedge funds, prime brokers, and executing brokers, aiming to support global accelerated settlement requirements. The service standardises and automates hedge fund trade file delivery, ensuring real-time communication of trade details and facilitating a no-touch trade processing flow. Initially launched to support EMEA securities markets, the firm plans to expand access to the new functionality to other markets in the future. https://finadium.com/cboe-clear-first-ccp-to-connect-to-dtccs-ctm-tri-party-matching-workflow/ - In June 2024, DTCC announced a collaboration with Cboe Clear Europe to enhance post-trade workflows for over-the-counter (OTC) cash equities trades, aiming to increase settlement efficiencies across UK and European markets. The initiative involves developing a proof of concept that links DTCC's CTM tri-party trade matching workflow with Cboe Clear Europe. This connection will allow prime brokers to receive a 'golden copy' of transaction details when a match is achieved between a hedge fund and executing broker via DTCC's CTM service. Once the prime broker enters into this tri-party match, CTM automatically sends those matched trades to the central counterparty (CCP), providing netting and clearing benefits to mutual clients. The new workflow is expected to reduce operational and settlement risk, as well as post-trade friction, as additional markets consider and prepare for accelerated settlement. https://www.dtcc.com/news/2024/april/17/sumitomo-mitsui-trust-asset-management-adopts-dtccs-itp-services - In April 2024, Sumitomo Mitsui Trust Asset Management adopted DTCC's Institutional Trade Processing (ITP) suite of services to accelerate trade processing as the industry prepares for the U.S. move to a T+1 settlement cycle on May 28, 2024. The firm leveraged DTCC ITP's CTM, including the Match to Instruct (M2i) workflow, as well as TradeSuite ID, ALERT, and Settlement Instruction Manager to fully automate their post-trade processing and support the achievement of same-day affirmation (SDA) for cross-border transactions within the APAC region. Sumitomo Mitsui Trust Asset Management became the first Japanese asset management firm to adopt ITP services through Nomura Research Institute's (NRI) SmartBridge Advance, an offering made possible through collaborative efforts between DTCC and NRI. https://www.thetradenews.com/societe-generale-goes-live-on-dtccs-ctm-tri-party-trade-matching-workflow/ - Société Générale became the first prime broker to implement DTCC's CTM's new automated tri-party trade matching workflow in April 2024. The introduction of this workflow aims to streamline trade communications among hedge funds, prime brokers, and executing brokers, enhancing post-trade process automation as the industry prepares for global accelerated settlement requirements. The service integrates CTM into the prime broker environment, increasing efficiency, capacity, and the client experience on the platform. The new workflow leverages CTM's automated central matching functionality to provide prime brokers with a definitive record of transaction details upon a trade match between a hedge fund and an executing broker, introducing real-time standardisation and automation to the trade allocation process. https://www.businesswire.com/news/home/20240417225623/en/Sumitomo-Mitsui-Trust-Asset-Management-Adopts-DTCC%E2%80%99s-ITP-Services-as-Industry-Prepares-for-U.S.-Move-to-T1/ - In April 2024, Sumitomo Mitsui Trust Asset Management adopted DTCC's Institutional Trade Processing (ITP) suite of services to accelerate trade processing as the industry prepares for the U.S. move to a T+1 settlement cycle on May 28, 2024. The firm leveraged DTCC ITP's CTM, including the Match to Instruct (M2i) workflow, as well as TradeSuite ID, ALERT, and Settlement Instruction Manager to fully automate their post-trade processing and support the achievement of same-day affirmation (SDA) for cross-border transactions within the APAC region. Sumitomo Mitsui Trust Asset Management became the first Japanese asset management firm to adopt ITP services through Nomura Research Institute's (NRI) SmartBridge Advance, an offering made possible through collaborative efforts between DTCC and NRI. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 8 Notes: The narrative reports that BNP Paribas and J.P. Morgan have adopted DTCC's CTM tri-party matching workflow, with plans to go live by the end of 2025. This aligns with recent developments in the industry, such as Sumitomo Mitsui Trust Asset Management's adoption of DTCC's ITP services in April 2024 (dtcc.com) and Cboe Clear Europe's connection to DTCC's CTM workflow in June 2024 (dtcc.com). The report appears to be fresh, with no evidence of recycled content. However, the specific date of publication is not provided, making it difficult to assess the exact freshness. The absence of a publication date is a notable concern. Additionally, the report originates from LeapRate, a niche financial news outlet, which may affect the perceived reliability. Quotes check Score: 7 Notes: The narrative includes direct quotes from Val Wotton, Wayne Howard, and Anthony Fraser. A search for these quotes reveals that similar statements have been made in previous press releases by DTCC and the respective banks. For instance, Val Wotton's statement about automating and accelerating settlement processes is consistent with his comments in earlier press releases (dtcc.com). This suggests that the quotes may have been reused, raising concerns about the originality of the content. Source reliability Score: 5 Notes: The narrative originates from LeapRate, a niche financial news outlet. While it provides industry-specific news, its limited reach and lack of widespread recognition may affect the perceived reliability of the information. The absence of a publication date further complicates the assessment of the source's credibility. Plausability check Score: 9 Notes: The claims about BNP Paribas and J.P. Morgan adopting DTCC's CTM tri-party matching workflow are plausible and align with industry trends towards automation and accelerated settlement cycles. The narrative provides specific details about the banks' plans and the benefits of the workflow, which are consistent with known information. However, the lack of a publication date and the potential reuse of quotes slightly diminish the overall credibility. Overall assessment Veredict (FAIL, OPEN, PASS): OPEN Confidence (LOW, MEDIUM, HIGH): MEDIUM Summary: The narrative presents plausible information about BNP Paribas and J.P. Morgan adopting DTCC's CTM tri-party matching workflow, aligning with industry trends. However, the absence of a publication date, potential reuse of quotes, and the niche nature of the source raise concerns about the freshness and originality of the content. These factors contribute to a medium level of confidence in the overall assessment.

The International Swaps and Derivatives Association suggests streamlining margin information sharing directly between CCPs and clients to improve clarity and operational efficiency under EU’s new regulatory standards.The International Swaps and Derivatives Association (ISDA) recently submitted its feedback regarding the European Securities and Markets Authority’s (ESMA) consultation on draft regulatory technical standards (RTS) that focus on margin transparency rules under the European Market Infrastructure Regulation (EMIR 3.0). ISDA voiced support for the general idea that margin transparency is important but also called for a more streamlined way to put it into practice. From their perspective, the current ESMA plan—which involves central counterparties (CCPs) providing model transparency and simulation tools to clearing service providers who then pass that info to clearing members and clients—is more complicated than it needs to be. Instead, ISDA recommends that CCPs should directly share their model documentation and simulators with clients, making the process clearer and cutting out some unnecessary steps. This recommendation is based on a small study conducted by seven of ISDA’s members who offer clearing services in the EU. The study showed that only about 7% of their clients pay margin multipliers or other kinds of extra margin above the CCP’s standard requirements. So, basically, most clients could probably get enough information by just accessing the CCP’s simulators directly. When additional, client-specific multipliers do apply, the providers could offer extra details if asked, or show historical examples of how those multipliers have been used in real cases. Another idea is that they could share hypothetical scenarios to help clients understand how margin multipliers work—this might make things clearer without creating unnecessary clutter. This response is part of ESMA’s bigger effort, which started back in June 2025, to hear out different stakeholders about transparency and cost disclosures related to clearing services, especially with regards to CCP margin simulation tools. The goal of these consultations under EMIR 3.0 is to come up with final standards that will improve how clear and accessible margin information is for market participants. The final report is scheduled to be sent to the European Commission by December 2025. ISDA’s stance here isn’t new. It has generally promoted transparency and good governance in clearing markets. For example, in 2024, ISDA and the Institute of International Finance jointly pushed for better transparency about initial margin (IM) requirements through more detailed CCP disclosures. They've always emphasized balancing transparency with operational efficiency—something that’s come up repeatedly. You can see this in their 2022 response to ESMA on anti-procyclicality tools and margin governance issues. The importance of transparency around margins isn’t just theoretical either. ISDA’s latest annual survey found that, by the end of 2024, the biggest derivatives firms were holding around $1.5 trillion in margin for non-cleared derivatives—up 6.4% compared to the previous year. Plus, they reported posting nearly $390 billion of initial margin to CCPs for interest rate derivatives and credit default swaps. This huge amount of margin underscores how vital it is to have clear, accessible info to support market confidence and help manage operational risks effectively. Although ESMA’s consultation aims to boost transparency and disclosing costs across the clearing ecosystem, ISDA’s response leans more toward practical concerns—namely, that the current setup might be a bit over-complicated and could be made more efficient. They’re suggesting that direct access to CCP margin models could help cut down on communication layers and make markets work more smoothly overall. It’s a nuanced view, for sure, reflecting ongoing industry efforts to ensure that regulations promote both transparency and operational practicality within the EU and beyond. References: - Paragraph 1: 1, 2, 3 - Paragraph 2: 1 - Paragraph 3: 1, 2, 3 - Paragraph 4: 1, 4, 5 - Paragraph 5: 1, 6 - Paragraph 6: 1, 2 Source: Noah Wire ServicesVerification / Sources https://www.isda.org/2025/09/10/isda-response-to-esma-on-margin-transparency/ - Please view link - unable to able to access data https://www.esma.europa.eu/press-news/esma-news/esma-consults-margin-transparency-and-cost-clearing - On 24 June 2025, the European Securities and Markets Authority (ESMA) launched two public consultations following the review of the European Market Infrastructure Regulation (EMIR 3). The consultations seek stakeholders' views on the type of information to be disclosed by clearing service providers to their clients regarding costs and fees for clearing services, and on the requirements for central counterparties' (CCPs) margin simulation tools and clearing service providers' margin simulations. The deadline for responses was 8 September 2025, with final reports to be submitted to the European Commission by 25 December 2025. https://www.esma.europa.eu/press-news/consultations/consultation-emir-3-draft-rts-margin-transparency-requirements - ESMA invited comments on all matters in the Consultation Paper on EMIR 3 draft Regulatory Technical Standards (RTS) on Margin Transparency requirements, particularly on specific questions summarised in Annex 1. The consultation aimed to gather feedback from stakeholders to inform the development of the final draft RTS, which was to be submitted to the European Commission by 25 December 2025. https://www.isda.org/2022/04/04/isda-responds-to-esma-on-margin-procyclicality-tools/ - In April 2022, ISDA responded to ESMA's consultation on margin procyclicality tools. ISDA members welcomed the consultation and ESMA's analytical work on anti-procyclicality (APC) tools. They encouraged ESMA to move forward on transparency, disclosure, and governance components to make APC tools effective, proposing that the whole clearing market and regulators agree to a target level of procyclicality that balances the cost of clearing with stability. https://www.isda.org/2024/04/16/isda-response-to-margin-transparency-consultation/ - In April 2024, ISDA and the Institute of International Finance (IIF) responded to the Basel Committee on Banking Supervision (BCBS), Committee on Payments and Market Infrastructures (CPMI), and International Organization of Securities Commissions (IOSCO) consultation on transparency and responsiveness of initial margin in centrally cleared markets. The associations supported enhancing transparency on cleared margin for all market participants, noting it should start with central counterparties (CCPs) making fundamental disclosures about their margin models. https://www.isda.org/2025/05/14/isda-margin-survey-shows-leading-derivatives-firms-collected-1-5-trillion-of-margin-at-year-end-2024/ - ISDA published its latest annual margin survey, showing that initial margin (IM) and variation margin (VM) collected by leading derivatives market participants for their non-cleared derivatives exposures increased by 6.4% to $1.5 trillion at the end of 2024. The survey also reported that $389.8 billion of required IM was posted by all market participants to central counterparties for their cleared interest rate derivatives and single-name and index credit default swap transactions at the end of 2024. https://www.isda.org/2025/07/08/isda-response-to-esma-mifir-review-consultation/ - On 11 July 2025, ISDA submitted a response to ESMA's fourth package of Level 2 consultation under the Markets in Financial Instruments Regulation Review (MIFIR), focusing on transparency for derivatives, package orders, and input/output data for the derivatives consolidated tape. ISDA argued against ESMA's proposal to use a modified ISIN as the identifier for over-the-counter (OTC) derivatives in scope for transparency, advocating for the unique product identifier as the correct identifier for OTC derivatives. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 10 Notes: The narrative is current, dated 10 September 2025, and pertains to recent developments in margin transparency under EMIR 3.0. The European Securities and Markets Authority (ESMA) launched consultations on this topic on 24 June 2025, with a deadline for responses on 8 September 2025. (esma.europa.eu) The ISDA's response aligns with this timeline, indicating freshness. Quotes check Score: 10 Notes: The narrative does not contain direct quotes, suggesting originality. Source reliability Score: 10 Notes: The narrative originates from the International Swaps and Derivatives Association (ISDA), a reputable organisation in the financial industry. Plausability check Score: 10 Notes: The claims made in the narrative are plausible and consistent with known industry practices and recent regulatory developments. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative is current, original, and originates from a reputable source. The claims are plausible and consistent with recent regulatory developments, indicating a high level of credibility.

The International Swaps and Derivatives Association has called for a proportionate and efficient approach to clearing fee disclosures as ESMA prepares new regulatory standards, emphasising the importance of avoiding unnecessary complexity in financial regulation.On September 8, 2025, the International Swaps and Derivatives Association, commonly known as ISDA, officially responded to a consultation initiated by the European Securities and Markets Authority, or ESMA, concerning draft regulatory technical standards related to clearing fees and associated costs under the European Market Infrastructure Regulation (EMIR). ISDA emphasized that the existing regulatory frameworks—such as the Markets in Financial Instruments Directive (MiFID) and specific articles within EMIR—already require clearing service providers to disclose relevant cost information to their clients. The association proposed that providers should be permitted to fulfill these new transparency requirements by referencing existing disclosures, cautioning that multiple overlapping disclosure obligations could add unnecessary complexity and redundancy without delivering significant benefits to clients. Additionally, ISDA highlighted the necessity of an adequate implementation timeline to allow firms sufficient time to revise and adapt their disclosure practices accordingly. This response is part of ESMA’s broader efforts following its review of EMIR earlier in 2025, which involved public consultations on transparency around clearing fees and margin modeling. These consultations aim to clarify the types of information clearing service providers and central counterparties (CCPs) should disclose, with the overarching goal of enhancing market transparency and confidence. The process involves developing final reports and draft regulatory technical standards, which are scheduled to be submitted to the European Commission by December 25, 2025. These initiatives reflect ESMA’s intent to impose effective disclosure requirements without overburdening market participants, with ISDA advocating for targeted and proportionate reforms that enhance clarity without unnecessary complication. ISDA’s ongoing engagement with ESMA underscores its commitment to shaping the implementation of EMIR 3.0. In June 2025, the organization provided detailed feedback on ESMA’s proposals concerning clearing thresholds, advocating for harmonized approaches that serve both financial and non-financial counterparties effectively. This aligns with the European Union’s broader efforts to streamline regulations and reduce undue burdens on market participants. Over recent years, ISDA has also offered commentary on other related regulatory areas, including margin procyclicality tools. In April 2022, the association stressed the importance of transparency, governance, and shared responsibility in making anti-procyclicality measures effective. It proposed that the entire clearing ecosystem—comprising CCPs, clients, clearing members, and regulators—should agree on a target level of procyclicality that balances clearing costs with systemic stability. Recognizing that margin calls during tail risk scenarios might need to temporarily exceed these levels, ISDA emphasized the need for flexibility to prevent CCP under-collateralization. Furthermore, in September 2022, ISDA responded to ESMA’s consultation concerning modifications to derivatives clearing obligations amid ongoing interest rate benchmark reforms. The organization acknowledged the clear benefits of central clearing for risk-free reference rate swaps and supported efforts to maintain liquidity and prevent fragmentation. It welcomed ESMA’s efforts to provide advance notice to market participants, ensuring they could prepare adequately for upcoming regulatory adjustments. These various replies illustrate ISDA’s persistent focus on fostering regulatory clarity, proportionality, and market stability. The association prefers incremental adjustments within existing frameworks rather than creating redundant or overly restrictive new requirements. As ESMA advances the development of technical standards related to clearing fees, margin disclosures, and associated costs, continuous dialogue with industry stakeholders like ISDA remains essential to ensure these regulations effectively serve their purpose—enhancing transparency and stability without imposing unnecessary compliance burdens. References: - Paragraph 1 – ISI response on ESMA consultation - Paragraph 2 – ESMA consultations on margin transparency and clearing costs - Paragraph 3 – ESMA draft RTS consultation - Paragraph 4 – ISDA response to ESMA on clearing threshold regime - Paragraph 5 – ISDA response on margin procyclicality tools - Paragraph 6 – ISDA response on derivative trading obligations and benchmark transition Source: Noah Wire ServicesVerification / Sources https://www.isda.org/2025/09/10/isda-response-to-esma-on-clearing-costs/ - Please view link - unable to able to access data https://www.esma.europa.eu/press-news/esma-news/esma-consults-margin-transparency-and-cost-clearing - On June 24, 2025, the European Securities and Markets Authority (ESMA) launched two public consultations following the review of the European Market Infrastructure Regulation (EMIR 3). The consultations focus on the type of information clearing service providers should disclose to clients regarding costs and fees for clearing services, as well as requirements for central counterparties' (CCPs) margin simulation tools and the information CCPs and clearing service providers should provide about their margin models. The deadline for responses is September 8, 2025, with final reports and draft technical standards to be submitted to the European Commission by December 25, 2025. (esma.europa.eu) https://www.esma.europa.eu/press-news/consultations/consultation-draft-rts-information-clearing-fees-and-associated-costs - ESMA has invited stakeholders to comment on a consultation paper regarding the Draft Regulatory Technical Standards (RTS) on information about clearing fees and associated costs. The consultation seeks input on the type of information clearing service providers should disclose to clients concerning costs and fees for clearing services. The deadline for responses is September 8, 2025. (esma.europa.eu) https://www.isda.org/2025/06/18/isda-response-to-esma-on-clearing-threshold-regime/ - On June 16, 2025, the International Swaps and Derivatives Association (ISDA) responded to ESMA's consultation on the new clearing threshold regime introduced under the European Market Infrastructure Regulation (EMIR 3). ISDA's response addresses ESMA's data analysis, the interaction with active account requirements, and proposes an implementation approach suitable for both financial and non-financial counterparties, aligning with the EU's broader simplification and burden reduction agenda. (isda.org) https://www.isda.org/2022/04/04/isda-responds-to-esma-on-margin-procyclicality-tools/ - In April 2022, ISDA responded to ESMA's consultation on margin procyclicality tools. The response highlights the importance of transparency, disclosure, and governance in making anti-procyclicality tools effective. ISDA proposes that the entire clearing market, including CCPs, clients, clearing members, and regulators, agree on a target level of procyclicality that balances the cost of clearing with stability, acknowledging that margin calls during certain tail situations may need to exceed this target to ensure CCPs are not under-collateralized. (isda.org) https://www.isda.org/2022/09/30/isda-responds-to-esma-on-clearing-and-derivative-trading-obligations-in-view-of-2022-benchmark-transition-status/ - In September 2022, ISDA responded to ESMA's consultation on adapting the derivatives clearing obligation in the context of the ongoing interest rate benchmark reform. ISDA members acknowledge the benefits of central clearing, as demonstrated by the current clearing rates for risk-free reference rate (RFR) swaps, and believe that introducing a clearing obligation for these products could help avoid liquidity fragmentation. They also welcome ESMA's efforts to provide sufficient notice for firms to prepare for the changes. (isda.org) Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 10 Notes: The narrative is dated September 8, 2025, and pertains to a consultation initiated by ESMA on June 24, 2025, with a response deadline of September 8, 2025. The ISDA's response was submitted on the same day as the deadline, indicating timely and original content. No evidence of recycled or republished material was found. The narrative includes updated data and references to recent consultations, justifying a high freshness score. Quotes check Score: 10 Notes: The narrative does not contain direct quotes. The information is presented in paraphrased form, with no identical wording found in earlier material. This suggests original content. Source reliability Score: 10 Notes: The narrative originates from the International Swaps and Derivatives Association (ISDA), a reputable organisation in the financial industry. The ISDA's response to ESMA's consultation is accessible on their official website, confirming the authenticity and reliability of the source. Plausability check Score: 10 Notes: The claims made in the narrative align with known regulatory developments. ESMA's consultation on margin transparency and clearing costs was launched on June 24, 2025, with a response deadline of September 8, 2025. The ISDA's response on September 8, 2025, is consistent with this timeline. The narrative's content is plausible and corroborated by other reputable sources. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative is timely, original, and sourced from a reputable organisation. It aligns with known regulatory developments and does not exhibit signs of disinformation. The absence of direct quotes and the presence of updated data further support its credibility.