By Eric Decker
Every day, global banks disburse hundreds of millions of dollars to investors directly or via the Depository Trust & Clearing Corporation (DTCC). The typical process involves manually matching the obligations of bond issuers with amounts due to their investors. These processes are extremely labor intensive and often result in costly mismatching errors. The overnight cost of paying the incorrect party and expense of retrieving funds after late discovery can result in huge and unnecessary financial exposure. The mismatching risk is compounded when proper procedures are not in place to catch these errors. In addition, an intensive manual intraday matching process has a negative impact on an institution’s DTCC payment scorecard results, which are shared with investors and participants.