March 8, 2013
December 12, 2012
The Depository Trust Company (DTC), a subsidiary of The Depository Trust & Clearing Corporation (DTCC), is planning on implementing a number of major structural modifications to the U.S. settlement process that will fundamentally alter the way securities transactions in equities, corporate debt and municipal debt securities are settled in the U.S. These proposed changes represent significant enhancements to the settlement process.
Since 1995, the settlement cycle has remained at trade date plus three business days (“T+3”) for U.S. equities, corporate bonds and municipal bonds, despite significant improvements in post-trade processes and underlying technology over the same period. Accordingly, in May 2012, the Depository Trust and Clearing Corporations (DTCC) commissioned an independent study to examine and evaluate the necessary investments and resulting benefits associated with a shortened settlement cycle (SSC) for US equities, corporate and municipal bonds.
This white paper launches the final stage in the industry’s long-standing campaign to achieve full dematerialization in the U.S. financial markets. It also opens a formal discussion among industry stakeholders to gain consensus on critical next steps.
Industry leading financial institutions are reaping operational benefits and avoiding significant unnecessary financial exposures by ensuring the quality and the timeliness of their corporate actions data. As well as minimising costs from operational disruption caused by incorrect or incomplete data, these firms are able to reduce the risk of litigation and compensation claims arising from corporate actions errors, allowing them to save on the capital they set aside to mitigate these risks and avoid reputational harm. In many cases, the amounts involved are measured in the millions, of pounds, euros or dollars.
January 17, 2011
This paper presents The Depository Trust & Clearing Corporation’s (DTCC) preliminary analysis of shortening the settlement cycle for U.S. equity1 trades from the current trade date plus three business days (T +3) to T+2 or T+1 and seeks further input from the industry to serve as the basis for a more comprehensive cost-‐benefit analysis to explore the case for making this change.
Since the events of September 11, 2001, the need to protect the global financial system has brought heightened attention to business continuity planning, both in the United States and in markets worldwide. The need is particularly acute for The Depository Trust & Clearing Corporation (DTCC), the largest post-trade financial services infrastructure company in the world. Safeguarding DTCC’s ability to support its critical clearing, settlement and asset servicing roles, as well as the highly specialized knowledge of its employees, is acknowledged by the industry and regulators alike to be essential to sustaining the safety and soundness of U.S. financial markets.
October 25, 2011
The Depository Trust & Clearing Corporation (DTCC) is seeking feedback on its initiative to change the way Continuous Net Settlement (CNS) transactions are processed. CNS is a service of the National Securities Clearing Corporation (NSCC). Currently, CNS obligations of NSCC Members (short covers) and allocations to such NSCC Members (long allocations) are processed as free of payment deliveries at The Depository Trust Company (DTC) with the related funds settlement occurring at NSCC via an end-of-day net settlement process.
September 13, 2011
As Europe's securities regulators, equities central counterparties (CCPs) and trading firms work together to design a framework for interoperability between CCPs that is safe, scalable and sustainable, EuroCCP presents a discussion of several options for reducing the liquidity and credit risks in multi-CCP links. In this paper, EuroCCP offers for discussion and consideration four key recommendations.
January 13, 2010