The Depository Trust & Clearing Corp. is pilot-testing a system that performs cash flow matching for credit derivatives. The DTCC is offering a central point to which a firm can send cash flows to be run through an automated reconciliation process and returned to the firms. "Using the system, we are matching pretty well with our counterparties, which has been a big issue at the moment because of the compound growth of volumes," saidStefano Toffolo, European co-chair of the operations committee at the International Swaps and Derivatives Association and global head of over-the-counter derivatives operations atCredit Suisse First Boston. ISDA released a strategy paper for automating derivatives settlements last week.
Depository Tests Credit Derivatives Matching System
