DTCC Deriv/SERV automates matching and confirmation for a wide range of over-the-counter (OTC) derivatives products, including credit, equity and interest rate contracts.

Overview

DTCC Deriv/SERV automates matching and confirmation for a wide range of over-the-counter (OTC) derivatives products, including credit, equity and interest rate contracts. It is the only post-trade processing platform used by virtually all major global dealers to electronically match and confirm transactions in all three primary asset classes.

Specific instruments covered include single reference entity credit default swaps (CDS), CDS indices, CDS index tranches, equity index and share options, equity swaps, variance swaps, and dividend swaps, interest rate swaps, inflation swaps and swaptions. Deriv/SERV regularly expands matching and confirmation coverage to additional instruments.

Deriv/SERV supports a wide range of trade events including new trades, full or partial terminations, assignments, increases, amendments and exits.

Who Can Use the Service

Global derivatives dealers and buy-side firms.

Benefits

• Reduces operational risk associated with unconfirmed trades and related documentation, by quickly identifying and resolving trading discrepancies.
• Enhances efficiency by centralizing, streamlining and automating the processing of trade confirmations.
• Increases accuracy through electronic matching, which reduces errors that can result from paper-based and manual data exchange.
• Lowers the operational costs arising from labor-intensive manual processing and allows staff to focus on value-added responsibilities.

How the Service Works

Customers can connect to Deriv/SERV either through direct, computer-to-computer, real-time messaging, a spreadsheet upload capability via the Internet, or a Web-browser interface. Internet connections are secured via a digital certificate issued by DTCC Deriv/SERV and a high-security encryption connection. Users can also connect to Deriv/SERV through links with a variety of complementary service providers that have links with the service.

Matching and Confirmation: Matching is used by most dealers and some buy-side firms. Parties submit transaction details to Deriv/SERV. Once Deriv/SERV has received details from both sides to a trade, it automatically compares the stated terms of the transaction and provides each party with its status over a browser-based Internet screen. If the transaction fully matches, Deriv/SERV reports it as a confirmed match. If there are fields that do not match, the system automatically reports them, allowing customers to view discrepancies in real time and submit new or enhanced data.

Affirmation: Affirmation is used by buy-side firms, primarily those with low volumes. Parties view trades "alleged" against them on-line and either accept the trade details or suggest modifications. When modifications are suggested, Deriv/SERV automatically creates a new trade record, which both parties can compare against their original records and continue to suggest modifications until the trade reaches "confirmed" status.

Deriv/SERV uses Financial products Markup Language (FpML™) as its standard language. FpML is a trademark of the International Swaps and Derivatives Association.

Fees

Dealers are charged "at cost" for their transactions and buy-side firms are not charged any fees to use the service.

For More Information

For more information, please contact Deriv/SERV Client Account Manager:
E-mail: derivserv_CAM@dtcc.com
New York: +1 212 855 3387
London: +44 (0) 20 7650 1453