DTCC's subsidiary, The Depository Trust Company, established in 1973, was created to reduce costs and provide clearing and settlement efficiencies by immobilizing securities and making "book-entry" changes to ownership of the securities. DTC provides securities movements for NSCC's net settlements, and settlement for institutional trades (which typically involve money and securities transfers between custodian banks and broker/dealers), as well as money market instruments.
DTCC's subsidiary, National Securities Clearing Corporation (NSCC), established in 1976, provides clearing, settlement, risk management, central counterparty services and a guarantee of completion for certain transactions for virtually all broker-to-broker trades involving equities, corporate and municipal debt, American depositary receipts, exchange-traded funds, and unit investment trusts.
NSCC also nets trades and payments among its participants, reducing the value of securities and payments that need to be exchanged by an average of 98% each day. NSCC generally clears and settles trades on a T+3 basis.
Fixed Income Clearing Corporation (FICC), was created in 2003 to reduce costs and give DTCC customers a common approach to fixed income transaction processing by integrating the Government Securities Clearing Corporation and the Mortgage-Backed Securities Clearing Corporation.
DTCC Solutions LLC was created to deliver information-based and business processing solutions to financial intermediaries globally.
DTCC Deriv/SERV LLC provides automated repository and asset servicing for over-the counter (OTC) credit derivatives trades. It also provides related matching of payment flows and bilateral netting services. Deriv/SERV's customer base, which includes dealers and buy-side firms from more than 52 countries, is the market's largest post-trade service provider for OTC derivatives. In 2009, Deriv/SERV processed a record 11.5 million transactions.
Deriv/SERV's global Trade Information Warehouse (Warehouse) is the market's first and only comprehensive trade database and centralized electronic infrastructure for post-trade processing of OTC credit derivatives contracts over their lifecycles, from confirmation through to final settlement.
The Warehouse Trust Company LLC is a subsidiary of DTCC Deriv/SERV LLC, regulated as a member of the U.S. Federal Reserve System, and as a limited purpose trust company by the New York State Banking Department. The Warehouse Trust operates DTCC's Trade Information Warehouse.
DTCC Derivatives Repository Ltd. jointly houses the global equity derivatives repository and maintains global credit default swap data identical to that maintained in its New York based Derivatives Repository.
MarkitSERV, a jointly-owned company with Markit, also provides automated matching and confirmation services for OTC credit, equity and interest rate derivatives.
DTCC's subsidiary, DTCC Loan/SERV LLC, continues to build and expand the global infrastructure to support the syndicated loan market with an evolving suite of services. By leveraging DTCC's vast experience in processing bonds, equities and over-the-counter derivatives, DTCC Loan/SERV LLC helps deliver cost-effective solutions that reduce risk, boost efficiencies, improve transparency and enable the global syndicated loan market to grow in a rapidly changing financial and regulatory environment.
In 2009, DTCC Loan/SERV LLC introduced its Loan/SERV Contract Reconciliation Service in the U.S. and Europe. Contract Reconciliation represents an advanced version of LoanSERV's earlier Reconciliation Services and takes loan reconcilement to a more detailed level.
Omgeo, the leading provider of post-trade, pre-settlement institutional trade management solutions, processes over one million trades per day and serving some 6,000 investment managers, broker/dealers and custodians in 42 countries.
The company partners closely with service providers, infrastructure suppliers, industry standards organizations and its clients to increase operational efficiency and reduce risk for the world's investment management community through straight-through processing (STP) solutions.
Omgeo LLC is a global joint venture of DTCC and Thomson Financial.
European Central Counterparty Limited (EuroCCP) is a UK-incorporated, FSA-regulated Recognised Clearing House. It is the European subsidiary of The Depository Trust & Clearing Corporation (DTCC) and is headquartered in London. EuroCCP was formed to provide clearing and settlement services for a wide range of European markets, offering the scale economies of the US market and risk management expertise to European market participants. It currently clears equity trades in 19 markets. EuroCCP has been appointed to provide central counterparty services by Turquoise, SmartPool, NYSE Arca Europe and Pipeline for equity trades. EuroCCP has also entered into a Memorandum of Understanding with NASDAQ OMX to provide clearing services for its exchanges in Copenhagen, Helsinki and Stockholm. EuroCCP currently counts as clearing participants 26 of the major pan-European equity market players. Market participants can trade equities on any venue EuroCCP supports and have their transactions netted for settlement and/or margin purposes for the same security traded on the same day, thereby reducing costs and operational risks. EuroCCP is a strong advocate of CCP interoperability and is in the process of achieving interoperability with LCH.Clearnet, SIX x-clear and EMCF.
For more information about EuroCCP, visit www.EuroCCP.co.uk
The two largest pan-European cash equities clearing houses, EMCF and EuroCCP, announced plans to combine their strengths and capabilities by forming a new entity that will deliver greater efficiencies and sustainable competition to the pan-European market place.Read More