National Securities Clearing Corporation (NSCC), the clearing agency subsidiary of DTCC is offering the new service.
OW leverages NSCC’s existing systems and enhances its current fail clearance system, known as the Reconfirmation and Pricing Service (RECAPS), to automate the matching and confirmation of broker-to-broker ex-clearing trades.
In addition, OW will track, store and maintain certain unsettled obligations in a central location, and make these obligations available for RECAPS processing until they are settled, cancelled or otherwise closed in the system.
Real-time updates, as well as an end-of-day report, that reflect firms positions in OW, will be offered as part of the service, according to DTCC.
The implementation of the new service will start in March 2011, and is expected to be fully functional by June 2011.
DTCC managing director for Clearance and Settlement/Equities Susan Cosgrove said OW service will create a more efficient and cost-effective system that will transform the processing of these transactions, while also delivering real-time capabilities to view virtually all failed trading activity in the US marketplace for equities, corporates, municipals and unit investment trust securities.
