The payment reconciliation service provides automated real-time matching and bilateral netting of quarterly payments for credit default swaps.

Overview

The payment reconciliation service provides real-time automated matching and bi-lateral netting of quarterly payments for credit default swaps electronically matched and confirmed on Deriv/SERV's matching and confirmation service. The service includes an ongoing reconciliation for all payments through a linked deal repository and centralized payment management through DTCC's FedWire and SWIFT connections.

Who can use the service

Global derivatives dealers and buy-side firms can use the service.

Benefits

The benefits of the service include:

• Efficient, automated, real-time matching of payments prior to quarterly payment dates saves time and money by helping to ensure that payments are agreed before the funds transfer is made.
• Complete, highly redundant infrastructure and legal framework in place to help ensure security and privacy of the payment information submitted.

How the service works

DTCC's credit default swaps matching and confirmation service connects most major dealers in credit default swaps, as well as a large number of buy-side firms. Firms may go into the system at any time and link trades with payment data, and see the real-time match of that data with their counterparties.

DTCC's service automatically nets the payments bilaterally, performs automatic data checks and then helps to ensure settlement through a central payment management service at DTCC through links to the FedWire and SWIFT (among others) for payment transfers in other major currencies.

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

London: +44 (0) 20 7650 1410
New York: +1 212 855 2027
Email: derivservrequests@dtcc.com