Industry Issues & Initiatives
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The Depository Trust & Clearing Corporation (DTCC), through its subsidiary, The Depository Trust Company (DTC), will institute Settlement Matching for DTCC Participants beginning in 2013, bringing significant enhancements to the settlement process and further reducing risk for DTC and its Participants.
From a public policy perspective and in the interests of ensuring the stability and transparency of financial markets, there must be a consolidated, comprehensive single entity that collects and maintains the underlying position data and makes it available to regulators in the most efficient, timely and usable manner.
DTCC, SWIFT and XBRL US have joined forces to improve issuer to investor communications for corporate action announcements in the U.S. market.
The goal is to promote straight-through processing (STP) of information from issuers through to investors and substantially reduce the market risks and costs associated with the corporate action announcement process.
The operation of a central counterparty (CCP) is expected to revolutionize how trades are cleared and settled in the mortgage-backed securities market, where trading in the U.S. now surpasses $100 trillion annually. The CCP will make trade processing easier, cheaper and less risky.
Q: What's wrong with paper certificates?
They're expensive to issue, store, ship and insure. And every year more than 1.2 million are reported lost, stolen or counterfeit, costing investors as much as $50 million to get replacements issued.
The Depository Trust & Clearing Corporation (DTCC) has undertaken the reengineering of its core systems for securities underwriting and corporate actions processing for the U.S. financial services industry. The initiative will create a single new platform, replacing more than 60 separate underwriting and corporate actions legacy systems that have evolved over the past three decades. The integrated platform will streamline processing, generate further efficiencies, reduce costs and provide greater flexibility — dramatically transforming how these systems manage information.
DTCC has established operations and staff in multiple locations, including locations outside New York City as well as outside the region. All locations are fully operational, including the multiple data centers and the multiple command centers, and all critical business functions can be conducted from locations outside the metropolitan area.
Short selling is a trading strategy where a broker/dealer or investor believes that a stock is overvalued and is likely to decline. It is an integral part of the way our capital market system works. Basically, it involves borrowing stock that you don't own and selling it on the open market. You then buy it back at a later date, hopefully at a lower price, and as a result, making a profit.