DTCC announced today that Japan’s Higo Bank has adopted its Integrated Trade Processing (ITP) services, marking a significant step in automating the bank’s middle and back-office functions. This partnership aims to enhance the efficiency of Higo Bank’s domestic and cross-border transactions, moving towards a no-touch processing model.

Higo Bank, the largest regional bank in Kumamoto Prefecture, Japan, has integrated DTCC’s Central Trade Manager (CTM), including CTM’s Match to Instruct (M2i) workflow, ALERT, and Settlement Instruction Manager. The adoption of these services is going to streamline the post-trade process for equities and fixed-income transactions, eliminating manual touchpoints and reducing risks and operational costs.

DTCC Partnership with Higo Bank to Automate Cross-Border Transactions

The move comes at a critical juncture, as global markets are considering shifting to T+1 settlement cycles following the successful transition in the U.S. in May 2024. By embracing ITP’s automation capabilities, Higo Bank is better positioned to align with these global trends while improving internal processes.

Kazuyoshi Uchiyama, Senior Executive Officer and General Manager of the Financial Markets Division at Higo Bank commented, “The global shift towards shorter settlement cycles and the operational risk requirements under the Basel Accords have made straight-through processing essential. The adoption of DTCC’s ITP services enables us to enhance internal controls, reduce risk, and streamline the post-trade process.”

DTCC’s CTM platform automates the trade confirmation process, matching cross-border and domestic transactions. The M2i workflow further simplifies the process by triggering trade affirmation and directing instructions for settlement to U.S. depositories. Additionally, the Settlement Instruction Manager enables the automatic generation and transmission of settlement instructions to custodians and third parties.

Val Wotton, Managing Director at DTCC ITP, added, “We are excited to collaborate with Higo Bank to drive greater efficiency and faster settlement finality in the region.”

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