The four named banks are JP Morgan, Barclays, Goldman Sachs and Credit Suisse, though a statement from DTCC indicated that other banks have signed up as well.
The platform will offer “a comprehensive service to collect and manage client entity reference data necessary to meet regulatory requirements and other normal course of business activities”, DTCC said in a statement.
The service is intended ultimately to address the client reference data requirements of banks, broker dealers, asset managers and hedge funds, including: legal entity hierarchies, standing settlement instructions (SSIs), regulatory compliance data (Dodd-Frank, EMIR, etc.), client on-boarding/KYC, Tax/FATCA and other requirements.
The firm said its aim is to “support the industry’s call for a comprehensive, centralised platform to effectively manage virtually all client reference data”.
Standardised processes and data formats will allow the banks to make “substantial improvements in the control environment surrounding client onboarding and to streamline supervisory examination of these processes”, the DTCC statement added.
The Financial Times reported the deal, noting that “slashing costs and improving compliance amid a string of new rules has risen close to the top of investment banks’ concerns.” Regulatory fines are a part of that cost burden.
DTCC is an industry-owned organisation, whose member firms include international broker/dealers, correspondent and clearing banks, mutual fund companies and investment banks.
The DTCC statement is available by clicking here.
The Financial Times story is available here (registration/subscription may be required)