ID Net

Affirmation Processing

DTC may accept eligible affirmed institutional transactions (“Affirmed Transactions”) from a utility that provides a matching service1   (“Matching Utility”).  The Matching Utility must be (i) a clearing agency registered pursuant to Section 17A of the Securities Exchange Act of 1934, as amended (the “Act”), (ii) an entity that has obtained an exemption from such registration from the U.S. Securities and Exchange Commission, or (iii) a “qualified vendor” for trade confirmation/affirmation services as defined by the rules of a self-regulatory organization.  A Matching Utility must establish a connection to DTC in accordance with DTC’s reasonable requirements in order to be able to submit Affirmed Transactions to DTC.  In this regard, in order for a Matching Utility to establish and maintain a connection with DTC the Matching Utility must be able to balance with DTC in an automated way2 and communicate transactions to and from DTC with the necessary mandated fields3.    Also, Matching Utilities that intend to establish a new connection with DTC must promptly contact DTC in order to start planning for establishment of the connection and allow adequate time to develop and adequately test the interface prior to the date it expects to implement its connection to DTC.
A Participant that is a counterparty to an Affirmed Transaction as submitted to DTC by a Matching Utility is deemed to have authorized the Matching Utility to provide an instruction to DTC, on the Participant’s behalf, to process the Affirmed Transaction in accordance with DTC’s Rules and Procedures.  The submission of such Affirmed Transaction by the Matching Utility to DTC, on behalf of such Participant, constitutes the duly authorized instruction of the Participant to DTC to process the Affirmed Transaction in accordance with the Rules and Procedures. 
A Matching Utility that elects to enter into an arrangement to interoperate with another Matching Utility (“Interoperability Arrangement”) maintains the sole responsibility to ensure that its customers, including DTC Participants that are their customers, are operationally prepared to process Affirmed Transactions relating to the Interoperability Arrangement prior to the submission of such Affirmed Transactions to DTC.

1A “matching service” is an electronic service to match trade information, centrally, between a broker-dealer and its institutional customer.

2For each Matching Utility interfacing with DTC, DTC requires the Matching Utility to deliver a daily message on each business day shortly after noon from the Matching Utility with their accepted item counts of institutional delivery and ID Net (defined below) transaction totals for Settlement Date minus one transactions. DTC’s system will compare the totals from the Matching Utility to its accepted item counts. If the totals match, an “acknowledged balance” balance file will be sent to the Matching Utility. If the totals do not match, DTC will respond with the list of Settlement Date minus one control numbers received from the Matching Utility, along with their respective transaction types for the originating Matching Utility to compare.

3The mandated fields for this purpose are the transaction control number, DTC receiver and deliverer account number, CUSIP, message type, share quantity, market type, buy-sell indicator, broker ID, ID agent internal account number, broker internal account number, agent bank ID, settlement amount, origination entity, recipient of message, institution, and settlement date.


ID Net Overview

ID Net Settlement and Risk Mgt Processing

Trades Exited from ID Net

ID Net Operations