We are committed to providing the same level of transparency into block trades via CTM that a broker currently has on OASYS. As IMs migrate traffic from OASYS we are strongly encouraging them to allege these trades against a specific broker BIC as opposed to using a broker matching group (BRMG) as this will facilitate full transparency. Additionally, in cases where this is not technically possible for the IM based on their CTM implementation, we’ve launched the following initiatives:
The CTM View Instructing Party Alleged (VIPA) subscription option is available to Investment Managers and enables sell-side clients to query and/or view blocks alleged against them when an investment manager has utilized a Broker Matching Group (BRMG) identifier which contains a single active broker BIC. The VIPA subscription option creates full visibility earlier in the trade life cycle and provides greater transparency to help expedite the resolution of block shaping discrepancies. The VIPA subscription was turned on for the majority of the CTM buy-side community in January 2019.
DTCC has created a new type of broker entity called a View Only Broker (VOB). The VOB entity grants a CTM broker view only access to unpaired investment manager alleged blocks, where the investment manager used a BRMG to identify the broker. The Investment Manager will need to add the VOB BIC to the applicable BRMG and this allows the VOB to view and monitor UNMATCHED trades alleged against them. The broker will use their normal CTM BIC to modify or process the trade to a MATCH AGREED state.
Additionally, ITP is exploring opportunities to align the way brokers arrange their BICs in CTM (via parent/child relationships) to the way IMs create and maintain BRMGs. This would build upon and enhance the VOB functionality mentioned above.