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FINTECH

DTCC is at the forefront of the fintech revolution and is actively exploring how transformative technologies like distributed ledgers, cloud computing, artificial intelligence and robotics can further enhance the post-trade process by mitigating risk, creating efficiencies and reducing costs.

DTCC’s Office of Fintech Strategy spearheads its global initiatives around technology research, technical development, collaboration and thought leadership. The Office is responsible for ensuring effective collaboration with market participants and key stakeholders around the world to advance technologies, while promoting standardization and best practice. Access more fintech resources.

DISTRIBUTED LEDGERS

As an industry-owned and governed financial market utility, DTCC believes distributed ledger technology (DLT) represents a generational opportunity to re-imagine post-trade infrastructure by fostering industry-wide collaboration and aligning the technology with its core mission of increasing efficiency and reducing risk.

To foster collaboration, DTCC is a leading contributor to DLT discussion and the implementation of it, with DTCC personnel serving on the Governing Board and the Technical Steering Committee at Linux Foundation’s Hyperledger Project – where DTCC is one of 30 founding members behind a consortium that promotes open source development for stakeholders looking to advance blockchain. DTCC is also an investor in Digital Asset, a leading software company that builds distributed, encrypted straight-through-processing tools. Access more blockchain resources.

CLOUD COMPUTING

The goal of DTCC’s cloud strategy is to increase the agility and elasticity of its technology delivery capability. As DTCC offers more services to the global financial industry, cloud computing is presenting DTCC with multiple options, such as scale, security, privacy and cost benefits.

In May 2017, DTCC issued its latest white paper, Moving Financial Market Infrastructure to the Cloud. Here, DTCC asserts that the capabilities, resiliency and security of services provided by cloud vendors have surpassed on-premise capabilities. The paper offers DTCC’s views on the benefits of the public cloud platform and discusses the relevant regulatory guidance and requirements to utilize cloud vendors as well as the related policy implications. Access more cloud resources.

CYBER SECURITY

DTCC is working with industry members and government agencies to raise awareness of and mitigate the impact of cyber-threats, and has stressed the importance of a robust threat information-sharing environment, particularly across critical infrastructures. To that end, DTCC is participating in an effort to enhance the cyber security and resilience of core financial services through its membership of the Financial Systemic Analysis & Resiliency Center (FSARC).

SYSTEMIC RISK

DTCC is committed to seeking opportunities to take risk out, and enhance the resiliency, of the financial marketplace. The risk management function has undergone one of the most dramatic transformations in the financial industry. The discipline is broader, more sophisticated, and more diverse than ever before. In addition to the more traditional financial risk categories, new responsibilities now encompass operational, systemic, technology, vendor and physical risk, as well as business continuity management.

DTCC’s risk management framework and governance structure is designed to identify, escalate and address threats as part of the company’s ongoing commitment to mitigate risks for DTCC, its users and the marketplace. Indeed, DTCC takes a holistic view of risk and a consistent approach to measuring and managing risk across multiple dimensions. In support of this, DTCC established a Systemic Risk Office (SRO) in the wake of the 2008 financial crisis to further expand DTCC’s risk management capabilities. The SRO is dedicated to identifying, monitoring and containing potential systemic threats. 

U.S. T+2 SETTLEMENT CYCLE

Shortening the U.S. settlement cycle for equities, corporate and municipal bonds and unit investment trust (UIT) trades from the current three-day settlement cycle, or T+3, to T+2 will provide a number of benefits, including reducing operational, systemic and counterparty risk, lowering liquidity needs, and limiting procyclicality, while aligning the U.S. with other settlement markets across the globe.

The T+2 Industry Steering Committee (ISC), organized by DTCC and made-up of members from across the securities industry, including the Securities Industry and Financial Markets Association (SIFMA) and the Investment Company Institute (ICI), was formed to provide oversight and guidance on the U.S. move to a shorter settlement cycle. Access more T+2 resources.

 

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