3493682 - NW MDM Portal/JAVA components fail to connect to MDM Server with Trust session error

While trying to connect to MDM Server with the MDM portal components one of the following errors can be seen in the default trace:

#MDM-FN-API#com.sap.mdm.tech.mdm4j#C0000AB8E09C0062000000040004105C#424721250000000004#sap.com/com.sap.pct.mdm.appl.masteriviews#com.sap.mdm.connector.connection.MdmConnectionFactory#Venkas12#2####0#Thread[HTTP Worker [@],5,Dedicated_Application_Thread]#Plain##
Cannot create JCA connection. Cause exception: 
[EXCEPTION]
com.sap.mdm.connector.utils.MdmConnectorException: Could not create a trusted connection to MDM server <XYZ> for user <ABC>. Server is not defined as trusted.

[...]

Caused by: com.sap.mdm.session.SessionException: Can not trust user session '<1:s>'
    at com.sap.mdm.internal.session.InternalSessionManager.createUserSession(InternalSessionManager.java:1242)
    at com.sap.mdm.internal.session.InternalSessionManager.innerGetSession(InternalSessionManager.java:877)
    at com.sap.mdm.internal.session.InternalSessionManager.createSession(InternalSessionManager.java:254)
    at com.sap.mdm.session.SessionManager.createSession(SessionManager.java:101)
    at com.sap.mdm.connector.utils.MdmSessionContextHelper.connectToMdm(MdmSessionContextHelper.java:216)
    ... 75 more
Caused by: com.sap.mdm.commands.CommandException: The connection is not trusted (0xffaa0225)

SAP NetWeaver Master Data Management 

MDM, SRMMDM, SRM-MDM, trust, trusted, trusteddir, trusted dir, portal, connector, mds, mdm server, java, api , KBA , MDM-FN-TC-IV , IViews , Problem