LONDON, Dec 07, 2011 (BUSINESS WIRE) -- The Depository Trust & Clearing Corporation (DTCC) today announced the launch of its global, over-the-counter (OTC) interest rates derivatives trade repository.
Publisher: The DTCC has been working behind the scenes for at least 3 years since we first started to ask questions about how the QUADRILLION+ Dollars in Derivatives were going to be reconciled, who would be the victims and who the victors.
Depository Trust Company (DTC) is a member of the U.S. Federal Reserve
System, a limited-purpose trust company under New York State banking law
and a registered clearing agency with the Securities and Exchange
Commission. The depository brings efficiency to the securities industry
by retaining custody of some 2 million securities issues, effectively
“dematerializing” most of them so that they exist only as electronic
files rather than as countless pieces of paper. The depository also
provides the services necessary for the maintenance of the securities it
has in custody.
DTCC's Board of Directors
Board is made up of 18 directors. Fourteen are from participants,
including international broker/dealers, correspondent and clearing
banks, mutual fund companies and investment banks. Two directors are
designated by DTCC's preferred shareholders: NASD and the New York Stock
Exchange. The remaining two are the chairman and the president and
chief executive officer of DTCC itself.
DTCC operates its
clearing, settlement, distribution and information-based businesses
through several operating subsidiaries. Each serves a specific segment
and risk profile within the securities industry.
“Depository Trust Company (DTC)
central securities certificate depository (also known as "CEDE" by
virtue of its nominee name, CEDE & Co.) through which members effect
security deliveries among each other via computerized bookkeeping
entries, thereby reducing the physical movement of stock certificates. “
Depository Trust Company (DTC): A central securities certificate repository that is a member of the
Federal Reserve System and is industry-owned. The New York Stock
Exchange is the majority owner. DTC members deliver securities to each
other via computerized debit and credit entries. This reduces the need
to actually move paper certificates.
New Automated Interface between the Federal Reserve System and the Depository Trust and Clearing Corporation
To: Chief Financial Officer
Subject: New Automated Interface between the Federal Reserve
System and the Depository Trust and Clearing Corporation
Federal Reserve System (“FRS”) and The Depository Trust Company (“DTC”)
are pleased to announce that a new automated interface has been
established between the organizations that will significantly improve
the process of pledging and withdrawing securities to and from various
collateral accounts maintained by the FRS and the U.S. Treasury. Effective immediately, DTC-eligible securities pledged to the FRS or the U.S. Treasury will be processed via this automated interface.
automated interface will allow deposits and withdrawals of DTC-eligible
securities to flow directly into the FRS's collateral system. As a
result, the process for moving DTC-eligible securities in and out of the
FRS's and U.S Treasury's collateral accounts will become much more
efficient and the following benefits will be realized:
THE DEPOSITORY TRUST COMPANY
Assessment of Compliance with the
CPSS/IOSCO Recommendations for Securities Settlement Systems
The Federal Reserve System Guide to Discount Window Collateral