Skip to main content

by Michael Scholl

Related Information

DTCC Risk Handbooks

DTCC has published the fourth in a series of handbooks that provide comprehensive information about the risk management policies, processes and practices of the organization and its subsidiaries.

The latest addition to the series, “MBSD Member Handbook,” is designed to help senior executives and other decision-makers understand the risk management regime employed by the Mortgage-Backed Securities Division of DTCC’s Fixed Income Clearing Corporation (FICC) subsidiary. This handbook joins similar publications that cover the Depository Trust Company (DTC), National Securities Clearing Corporation (NSCC) and FICC’s Government Securities Division (GSD).

DTCC updates the handbooks annually.

Greater transparency

The handbooks are part of an initiative to bring greater transparency to DTCC’s risk management infrastructure by giving clients and other interested parties comprehensive information about risk management for specific DTCC subsidiaries, according to Andrew Leonard, DTCC Managing Director and Head of Operational Risk.

“Firms, regulators and policymakers want in-depth knowledge of our risk infrastructure and how we manage it, and these handbooks go a long way toward giving them the information they need,” Leonard said. “In particular, our clients want to know how our risk management procedures protect and impact their business operations, so the more information we provide, the more beneficial it is for both client firms and DTCC.”

The DTCC Operations Advisory Council, made up of senior leaders at DTCC’s client firms, provided guidance on the handbooks’ content. Leonard noted that feedback on the handbooks from council members and other clients has been favorable.

E-learning courses on the way

The transparency initiative, implemented as part of the Systemic Risk Policy the DTCC Board of Directors approved in 2010, includes four e-learning courses being developed by DTCC.

Each course will include material related to a particular handbook, with the first course, focusing on the GSD handbook, scheduled to debut in late July. The course on MBSD will roll out in the fourth quarter of this year and the other two courses will be available in 2013.

Continuous risk enhancements

“For our clients to manage their risks, they need to understand the risks managed by DTCC,” said Leonard. “The handbooks are a key component of our drive to give firms a unified and comprehensive body of knowledge about DTCC’s risk management regimes.”

Since the 2008 financial crisis, DTCC has been extensively strengthening its risk management capabilities. Initiatives include remodeling the organization’s governance structure, expanding and strengthening its risk management staff, and enhancing quantitative risk models and risk-monitoring reporting.

Getting the handbooks

All four risk handbooks are available online to registered users at a password-protected site ( For assistance in registering for access to the handbooks, contact DTCC Learning at 888.258.6393 or by email at

Clients can direct any additional questions to their DTCC Relationship Managers. @