Charting a New Course with SFTs
Leveraging our expertise in clearing and risk management, last year we began work to provide the market with a cleared stock loan service, creating a new model for central clearing of equities lending and borrowing transactions. Over the course of 2019, we formulated requirements and began initial development. By creating a central clearing solution for equities securities financing transactions (SFTs), we aim to maximize capital efficiency and mitigate systemic risk by introducing more membership and cleared transaction opportunities for market participants. Development will continue through 2020, with the new service expected to launch in early 2021, pending regulatory approval.
A Focus on Resilience: How We’re Safeguarding Our Services
Witnessing the increased threats posed by cyberattack, the adoption of new technologies and the interconnectedness of the financial ecosystem, we issued an industry-wide call in 2019 to establish business resilience as a global priority. We defined our vision in a new white paper, Resilience First, which advocated for a holistic approach to resilience driven by business ownership and industry-wide collaboration. In addition, we recommended a set of core principles and supporting guidelines that can advance resilience efforts and safeguard critical business services against a wide range of technical, physical, logistical or financial disruptions.
EDM: When Data Intelligence Gets Smarter
Data intelligence continues to be a critical component to any firm’s success, and our Enterprise Data Management (EDM) practices are now widely recognized throughout the industry as an essential foundation for modernizing infrastructure and adopting advanced technologies, including machine learning and artificial intelligence. Last year we completed a three-year strategy roadmap aimed at modernizing our platforms, applying industry best practices in data governance, data quality and metadata management to the most critical data used in aggregating risk exposures for our three SIFMU business (DTC, FICC and NSCC), setting the foundation to create a sustainable, resilient, secure and simplified data architecture.
Delivering Innovative Solutions to Navigate Risk
We delivered powerful new tools for our clients to more efficiently analyze and manage risk and liquidity across functions and activities with the launch of enhanced functionality for our Risk Management as a Service (RMaaS) solution last year. The beta version of DTC Settlement Insights, along with the NSCC Clearing Fund Requirement Service, NSCC Mark to Market Portfolio Service, NSCC VaR Portfolio Service and VaR Calculator are enabling firms to gain deeper insights into their current and historical unsettled positions and mitigate risks within their organizations.