DTCC launched a new service, ID Net, which streamlines clearance and settlement, cuts customer costs and reduces fails associated with affirmed institutional equity trades, the utility said.

"Over the past couple years, we've seen marked growth in institutional trades, which has meant an increased number of steps, risks and costs in the overall clearance and settlement process," said Susan Cosgrove, DTCC managing director, Clearance and Settlement Group.

"This service will benefit all parties involved in institutional trading by increasing the overall certainty of settlement for matched institutional trades, encouraging early affirmation and reducing risks. In addition, banks and broker/dealers will realize cost savings, with the DTC Institutional Delivery (ID) fee reduced in half for all eligible trades for those who participate," Cosgrove said. A voluntary service, ID Net will be offered jointly by DTCC's NSCC and DTC subsidiaries: broker/dealers must be participants of both NSCC and DTC, and banks must be DTC participants. All ID Net customers will be required to enter into separate "ID Net Subscriber" agreements with NSCC and/or DTC, as applicable, governing their use of the service.

The ID Net service was developed by DTCC in collaboration with its global joint venture company, Omgeo , at the request of, and in consultation with, industry participants, including an active working group of broker/dealers and bank customers.