DTCC Connection

Innovation, risk mitigation and a strong operating and financial performance during a year as transformative and unpredictable as 2016 are among the many highlights covered in The Depository Trust and Clearing Corporation’s (DTCC) 2016 Annual Report, released today.

The digital Annual Report, titled “From Where We Stand,” shines a light on DTCC’s unique perspective from its position at the center of the industry. In a series of videos, DTCC senior executives explain how this vantage point enables us to anticipate and lead change to help shape the future of the industry. The videos cover a wide range of topics, including the social good of market utilities, transforming the industry’s IT profile and enabling future innovation.

The digital interactive report also highlights DTCC’s refreshed Vision, Mission and Values, along with its Strategic Priorities and plans for the future.

Michael Bodson, DTCC President and CEO, addresses stakeholders in his “Message From the CEO,” speaking about the dynamic nature of the financial markets during a year that included unexpected geopolitical shifts in the U.S. and Europe, and DTCC’s role in keeping the industry steady throughout.

“During times like these, we must balance today’s needs with tomorrow’s expectations,” Bodson said. “In a year as unpredictable, volatile and challenging as 2016, we continued to provide the certainty and stability that the markets expect from us, but we also trained our eyes on the future so that we emerge from this period of change stronger and ready to seize new opportunities to support the industry.”

“In 2016, DTCC seamlessly cleared and settled an average of 100 million transactions every business day. DTCC’s deep experience in managing market events and crises proved invaluable during the Brexit vote in June and the U.S. Presidential election in November,” Bodson continued. “Over the course of the year, DTCC’s core processing engines handled more than $1.5 quadrillion in financial transactions, a testament to the firm’s commitment to keeping the financial system operating efficiently.”

A Year of Strong Results

DTCC continued to improve upon its operating performance and bottom-line results in 2016, generating an increase in revenue to $1.7 billion, a 7% jump over the previous year. DTCC also strengthened its balance sheet in 2016 by reducing its long-term debt and overall leverage to $65 million, down 87% from the peak level of more than $500 million in early 2014.

This uptick in revenue, combined with expense control and a renewed focus on operating efficiency, enabled the firm to absorb some non-recurring expenses while still improving its financial performance.

Looking Ahead

“The success of any organization largely rests with its leadership, employees and clients, and we are very fortunate in all three areas,” Bodson said. He recognized the work of the Board of Directors, thanked clients for entrusting DTCC to serve them and applauded DTCC’s employees, who “deserve credit for the successes highlighted in this year’s Annual Report and the countless others that we achieved last year.”

While acknowledging that it is impossible to predict how the future will unfold, Bodson reinforced that DTCC will continue to set the bar high and strive for excellence. “When we look back on this moment many years from now, I am confident we will say that we made the most of our time, that we remained true to our heritage, that we made a difference and that we achieved our vision of being the undisputed leader in the post-trade infrastructure.”

To access the full annual report online, go to http://www.dtcc.com/annuals/2016/index.html