Tech bytes: Depository Trust Co. In Settlement Link

NEW YORK - An agreement brokered by the The Securities Industry Association may help custody banks and securities firms better conform with new Securities and Exchange Commission rules that have reduced from five days to three the time from when a trade is made to when actual funds change hands.

As part of its agreement with Thomson Financial Services, the Depository Trust Co. will consider proposing a new fee arrangement for linking its Interactive ID institutional trade confirmation system with compatible systems operated by others, such as Thomson's Oasys system.

Thomson and the depository will also consider establishing an automated link whereby Thomson's data base of standing delivery instructions can be accessed through the Interactive ID system.

Thomson Financial Services is a subsidiary of the Thomson Corp., which also owns the American Banker.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER