Skandinaviska Enskilda Banken AB (SEB) has gone live with The Depository Trust & Clearing Corporation’s (DTCC) new platform, ALERT for regional custodian workflow via global custodian, Brown Brothers Harriman (BBH).
With the ALERT regional custodian workflow, clients can automatically connect with users of the ALERT Global Custodian Direct (GC Direct) workflow, enabling standard settlement instructions (SSIs) to be exchanged between a custodian’s central repository and ALERT on behalf of a regional custodian.
SEB will leverage the regional custodian workflow which utilises ALERT for storing SSI data related to fund assets in its custody. It will automate the sharing of data managed by global custodians for security, cash-based and collateral SSIs.
Niklas Nyberg, head of products global custody at SEB, said: “SEB has been using ALERT for many years together with our clients. Therefore, we see the implementation of the regional custodian workflow, together with our partner BBH, as a natural step forward.”
He added: “The new regional custodian workflow will increase efficiency and mitigate operational risk when managing SSI data in ALERT. With this workflow, we are able to offer our clients automated streamlined access to ALERT, simplifying the SSI data management process.”
Robert Stewart, senior vice president at BBH, commented: “BBH is thrilled to continue our collaboration with DTCC and facilitate our clients’ use of the ALERT regional custodian workflow.”
He added: “We are able to assist in onboarding funds serviced by regional custodians which were previously out-of-scope, streamlining client adoption and improving SSI data management. The offering is well-aligned with our commitment to providing our global clients with industry-leading solutions that increase controls, mitigate risk and provide a superior client experience.”
Bill Meenaghan, executive director of ALERT at DTCC, said: “ALERT’s regional custodian workflow enables investment managers and regional custodians to jointly leverage the GC Direct workflow, allowing regional custodians to maintain an electronic signature of account approval and the assignment of SSI data ownership to the global custodian.”
He added: “By adopting this workflow, investment managers and regional custodians outsource SSI maintenance and distribution with the global custodian. This preferred workflow brings greater automation and efficiency to the process and reduces the operational burden.”
