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Thought Leadership - White Papers

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Recommendations for Reducing Risks Among Interoperating CCPs

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

Safe, Secure, Setting New Standards: A Report to the Industry on Business Continuity Planning

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.

February 2, 2004 (Updated December 2009)

P+I Payment Refinement: A Move to Further Reduce Payment Risk

One of the core asset services provided by DTC is the daily collection and allocation of cash entitlements due on DTC-eligible securities. Commonly referred to as Principal and Income payments, these entitlements include dividend, interest, periodic principal, redemption and maturity payments arising from the servicing of 3.5 million securities eligible at the depository. This document is intended to prepare participants and agents for the changes in DTC’s P+I collection and allocation practices.

November 30, 2009

Service Description for Central Counterparty (CCP) for Mortage-Backed Securities – The Next Steps

The Fixed Income Clearing Corporation (FICC), a subsidiary of The Depository Trust & Clearing Corporation (DTCC), working with its members, has identified a strategy to align the services provided by its Mortgage-Backed Securities Division (MBS) with a central counterparty (CCP) model of settlement. FICC’s primary objective in taking these next steps is to expand novation beyond select pool obligation settlements by becoming the CCP to the TBA net positions and obligations themselves. This effort will incorporate a number of development initiatives into one major program.

March 2, 2009

Complying with new cost basis legislation: What brokers, banks, transfer agents, mutual funds and issuers need to know

The Emergency Economic Stabilization Act, commonly referred to as the “bailout bill,” was signed into law on October 3, 2008. Included in the $700 billion rescue package are new and stringent requirements on financial intermediaries1 to report adjusted cost basis2 to investors and the Internal Revenue Service (IRS) for securities transactions posted after January 1, 2011. A principal aim of the legislation is to provide investors with the means to accurately report gains or losses on the sale of securities for their annual tax filings.

December 11, 2008

Transforming the Syndicated Loan Market: A White Paper to the Industry

The global syndicated loan market totaled more than $4.5 trillion in 2007, an increase of 13% over 2006 and 32% over 2005. The largest market was the United States, with $2.1 trillion in loan activity, an increase of more than 20% over 2006.

September 8, 2008

DTCC Processing: Unscheduled Close Processing

DTCC has prepared the following plan to address processing due to an unscheduled closing of the exchanges/markets as well as a broader closing affecting settling banks and the Fedwire money transfer system of the Federal Reserve Bank of New York (FRBNY).

December 27, 2007

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