Affirmation is an important part of a no touch workflow for DTC-eligible trades. An affirmed confirm triggers an automated settlement process at the DTC. If a confirm is unaffirmed, both the broker and the custodian need to take independent manual steps to effect settlement. If the IM is currently auto-affirming, there are two features which will support high affirmation rates as clients look to move US trades to CTM:
- No Touch Workflow: When the broker supports a no touch workflow they send confirms only into CTM and suppress the submission of confirms into TradeSuite ID. These confirms are propagated out to TradeSuite ID by CTM on behalf of the broker and the status of the confirm reflects the match status of the trade in CTM and user preferences.
- CTM Auto-Affirmation Workflow: For brokers who do not support a no touch workflow, there is new functionality that would allow the IMs allocations to drop from CTM into TradeSuite ID after matching in CTM. This is similar to how OASYS passes allocations to TradeSuite ID today. This second match in TradeSuite ID will allow the confirms to promote to affirmed. If the allocation mismatched in TradeSuite ID, the IM could use TradeSuite ID Web to identify the problem and address it upstream in CTM.