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Revisiting the Bulk Transfer Playbook

By DTCC Connection Staff | May 24, 2021

Considering the unexpected global market volatility experienced in March 2020, and again in early 2021, DTCC has recently joined with other industry participants and formed a working group to revisit the recommendations in the “Bulk Transfer Playbook” to determine industry readiness and client preparations.

The Bulk Transfer Playbook, a document issued to the industry by SIFMA and PricewaterhouseCoopers in September 2019, was the result of examining best practices, planning and processes to streamline and prepare for an emergency mass transfer of large quantities of customer accounts and assets from a distressed broker to a financially secure broker.

Clients face various risks if they are not able to transfer their accounts, and any delays or obstacles to the transfer of accounts could potentially impair resolution of the broker-dealer under liquidation or bankruptcy proceedings. DTCC worked with clients and issued its own white paper in 2015 to develop the specifications and technology procedures to standardize, facilitate and expedite the account transfer process.

“We didn’t experience any situations during the recent market volatility where a firm was in such distress or liquidating its business that accounts had to be transferred,” said Bill Kapogiannis, DTCC Executive Director, equities clearing services. “The industry has considered the problem of expediting the bulk transfer of client accounts for some time, but recent events have highlighted that we all need to be ready – and make sure everyone is aware of the planning and the process – well before anything happens.”

Industry Working Group

The industry working group is currently meeting to go through the Playbook, section by section, to make sure there is absolute clarity on any required planning and process. Below is the schedule of upcoming meetings, and what will be covered at each (all time ET):

  1. Overview (including high level timeline) and Firm Profile (~45 min) – May 20 at 2pm
  2. Governance & Communications / Compliance Considerations (1 hr.) – May 27 at 2pm - (targeted to Comms and Compliance stakeholders)
  3. Treasury & Funding (1 hr.) – June 3 at 2pm
  4. Transfer Requirements (1 hr.) – June 10 at 2pm (targeted to Operations stakeholders).

To be included in these meetings, please contact Bill Kapogiannis (bkapogiannis@dtcc.com), Executive Director, DTCC Clearing Services.

Bill Kapogiannis
Bill Kapogiannis Executive Director, DTCC Clearing Services

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