Fidelity Investments, the Boston-based mutual fund giant, has given its traders the green light to use the Depository Trust Co.'s (DTC) TradeMatch service to match and process institutional trades for its U.S. trading operations.
Aside from confirming Fidelity's use of TradeMatch, officials at the firm decline to comment on DTC's matching service. However, a DTC spokesperson says Fidelity provides the DTC-the world's largest securities depository-with intra-day trade notifications that are compared with confirmations sent to the depository by brokers. If the data matches, matched affirmed confirmations are produced and distributed to Fidelity's brokers and custodians.
One of the primary benefits of TradeMatch, adds the spokesperson, is that it reduces the number of messages and steps in the trade cycle-eliminating the need for Fidelity to compare internal trade data with its brokers' confirmations prior to affirming trades. By comparing trades earlier, exceptions can be identified and corrected sooner, preventing failed trades, says the spokesperson.