• Press Room
  • Press Releases
    • 2010
    • 2009
    • 2008
    • 2007
    • 2006
    • 2005
    • 2004
    • 2003
    • 2002
    • 2001
    • 2000
    • 1999
  • Media Contacts
• Newsletters

News Center

Press Room

DTCC Processes Record Volume of 209 Million Transactions During Turbulent Trading Week

Post-Trade Certainty, Reliability and Risk Management Ensures Stability Across Capital Markets

New York, October 14, 2008 - Capping one of the most volatile trading weeks in the history of Wall Street, The Depository Trust & Clearing Corporation (DTCC) seamlessly processed a record 209 million sides on Friday, October 10, 2008 -- a 15% increase over the previous record of 182 million achieved last month.

"Despite the extreme volatility that continues to grip the markets, DTCC is bringing much-needed stability and soundness to the industry by processing record volumes of transactions without disruption," said Donald F. Donahue, chairman and chief executive officer. "In the United States, what's significant is that we have a unique vantage point because of our centralized risk management oversight of trading activity across more than 50 exchanges and ECNs, including the New York Stock Exchange, Nasdaq and American Stock Exchange. We can pinpoint exposure and modify margining requirements quickly, which is especially critical during periods of market volatility."

DTCC is able to handle extreme market spikes because it has invested over the years in its technology infrastructure, which can handle 450 million sides per day. As a result, investors and financial firms can be confident that DTCC remains a steady force ensuring that their transactions will be processed. In addition to managing risk, DTCC has to ensure adequate systems backup to support the markets. In its 30+ year history, DTCC's family of companies has never experienced a system outage or service interruption that prevented clearance and settlement.

"DTCC members pay the lowest equity clearance fees in the world – DTCC charges an average of three-tenths of a cent per transaction, or about 66 thousandths of a cent per 100 shares," Donahue said. "Baked into that fee is enormous processing capacity and the most comprehensive risk management and business continuity programs in the world. These programs are designed to protect our members and guarantee that trades will be completed under both ordinary and extraordinary circumstances, which has the potential to save financial firms millions of dollars, especially when the markets are in turmoil."

More than 19 billion shares changed hands on October 10, 2008, in trading on the major markets. The number of transactions is different than shares; a single NSCC transaction (also called a side) can be for any amount of shares – for instance, 100 shares or 1,000 shares -- and can be for the buy side or sell side of a trade. DTCC's extensive risk management system includes rigorous standards for membership, capital adequacy standards, financial disclosure and financial surveillance of participants, which are essential in protecting the soundness of the capital markets.

Another significant value that DTCC brings in managing risk is "netting down" or reducing the number of trade obligations requiring financial settlement, which also minimizes securities movement and reduces systemic risk for the industry.

The 209 million sides processed on October 10 represent the fifth volume record achieved since the financial turmoil began on September 15. During that week, DTCC processed record volumes on four consecutive days, including 182 million sides on September 18, 155 million sides on September 17, 154 million sides on September 16 and 128 million on September 15. The 209 million sides processed last week is 112.5% higher than the 2007 peak day of August 16, 2007.

While netting statistics for October 10 won't be available until after settlement has occurred (T+3) later this week, the following chart illustrates how DTCC's clearing subsidiary nets down financial obligations requiring settlement by as much as 99% on peak volume days.

About DTCC

The Depository Trust & Clearing Corporation (DTCC), through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with financial firms and third parties who market these products. DTCC's depository provides custody and asset servicing for more than 3.5 million securities issues from the United States and 110 other countries and territories, valued at $40 trillion. Last year, DTCC settled more than $1.8 quadrillion in securities transactions. DTCC has operating facilities in multiple locations in the United States and overseas.