DTCC, SSImple Partner to Automate Standing Settlement Instructions for Custodians

Why It Matters

Automated, validated SSIs reduce settlement failures and support the industry’s shift to faster T+1 cycles, strengthening market resilience and lowering operational risk.

Key Takeaways

• DTCC partners with SSImple to automate SSI submissions into ALERT.
• Automation targets FMSB Core Principle 1, reducing settlement risk.
• Solution supports Europe’s shift to T+1 settlement by 2026.
• SSI Comply validates, normalizes, and streams clean data in real time.
• Custodians gain efficiency without extensive technology upgrades.

Pulse Analysis

Standing Settlement Instructions are the backbone of post‑trade processing, yet manual entry errors remain a leading cause of trade fails. The Financial Markets Standards Board has long advocated for automated SSI transmission to curb settlement risk, a goal that aligns with DTCC’s ALERT platform—the industry’s most comprehensive SSI repository. By integrating a compliant, real‑time validation engine, the market can move beyond patchwork workarounds toward a standardized data flow that underpins reliable settlement.

The DTCC‑SSImple collaboration introduces SSI Comply, a solution that ingests custodial SSI data, applies rigorous validation rules, and streams the clean set directly into ALERT. This eliminates the need for custodians to build bespoke interfaces or maintain parallel data stores, accelerating adoption ahead of Europe’s mandated T+1 settlement schedule. Real‑time transmission also enables instant error detection, allowing participants to correct discrepancies before they cascade into failed settlements, thereby preserving liquidity and reducing costly remediation.

Beyond the immediate European context, the partnership signals a broader industry shift toward automation as settlement cycles compress globally. Faster cycles demand higher data fidelity; any lapse can trigger systemic risk. By standardizing SSI handling, DTCC and SSImple not only help meet regulatory timelines but also set a precedent for U.S. market participants eyeing similar cycle reductions. The move enhances operational resilience, lowers compliance costs, and positions firms to capitalize on the efficiency gains of next‑generation settlement infrastructures.