In an effort to automate settlement for more transactions and prepare the securities industry for an even shorter settlement cycle, the Depository Trust Co. is proposing to bring commercial paper trades into its Institutional Delivery system.

Brokers now use ID to confirm institutional equity trades to money managers they trade for, or with custodian banks that act on behalf of money managers. The investors, in turn, affirm the broker messages, which triggers settlement at DTC.

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