DTCC recently undertook a multi-year consolidation to streamline the equity trade capture systems of its subsidiary, National Securities Clearing Corporation (NSCC), resulting in the groundbreaking Universal Trade Capture (UTC) system. This new platform for trade capture and reporting supports more effective post-trade risk management processes by providing tools for near-real time processing for the entire equity marketplace.
Leveraging UTC’s vast universe of equity data, DTCC Limit Monitoring provides its users with a continuously updated snapshot of their equity trading activities. It is designed to help clearing firms easily monitor and set equity trading credit limits in order to mitigate risk. These credit limits will be based on industry agreed metrics and will be set by the clearing brokers.
DTCC Limit Monitoring is the only instrument in the U.S. marketplace that offers a single, centralized aggregated view of all U.S. equity trades submitted for clearance. The risk management tool provides the industry with an early warning system that alerts clearing firms to trading activity that is nearing the credit limits they have set for their own and their correspondents’ accounts, enabling them to step in and effectively manage potential risk. Clearing firms can utilize the information generated by this risk mitigation tool to help determine what action is appropriate for their executing firm.
Given NSCC’s position in the marketplace, DTCC Limit Monitoring combines virtually all broker-to-broker equity, listed corporate and municipal bond and unit investment trust trading in the U.S. to provide aggregated exposure data that can be used to monitor the behavior of market participants.