DTCC Connection

Nov 01, 2011 • DTCC Connection

DTCC Wins ‘Excellence’ Awards in Europe

by Michael Scholl


Diana Chan, EuroCCP CEO

EuroCCP, DTCC’s European subsidiary, and DTCC’s data repositories were honored with awards at the ninth annual Financial News Awards for Excellence in Trading & Technology, Europe.


EuroCCP was named Best Clearing House for the second year in a row and its CEO, Diana Chan, the Most Influential Woman in Trading and Technology. DTCC’s data repositories, including its Trade Information Warehouse (TIW), were named Best Post-Trade Risk Management Product/Service and received the highest score in all award categories.


“This recognition underscores the positive impact EuroCCP and our global repository services are bringing to the industry,” said Donald F. Donahue, DTCC’s president and CEO. “The award to EuroCCP as Best Clearing House is particularly notable since, for the first time, this category encompassed both cash and derivatives clearing houses.”


The citations, presented by the London-based financial newspaper and website Financial News, are designed to recognize companies operating in Europe that have had the “boldest and most innovative initiatives.” A panel of more than 45 judges that included established industry veterans and experts selected the winners.


Fostering competition

The judges cited EuroCCP, which was launched in 2008, and Chan for bringing innovation and greater competition to the clearing of securities in Europe.


“Prior to our arrival in Europe, there was very little competition in clearing,” Chan told Financial News. “We have come to shake things up a bit, and we are competing with giants. At EuroCCP, we have a vision, and we believe that effective competition in the post-trade environment is necessary for the European equities markets to grow,” she added. “Interoperability is a major step in that direction.”


EuroCCP has played a pivotal role in helping to advance interoperability in Europe, which will allow users to choose their preferred clearer when trading on an exchange or multilateral trading facility. Interoperability is expected to increase competition in the European equities trading landscape and reduce trading costs for market participants, and interoperability reforms have enabled EuroCCP to expand its client base.


“Under Diana’s leadership, EuroCCP has been a staunch and vocal advocate of interoperability, which we are pleased to see is truly taking hold this year, with interoperability arrangements recently going live with trading venues BATS Europe and UBS MTF,” Donahue said.


Financial News noted that Bank of America Merrill Lynch, Nomura, Credit Suisse, Morgan Stanley and Citigroup have signed on to use EuroCCP as a preferred clearing provider. Goldman Sachs also has an agreement with EuroCCP to clear for the U.S. investment bank’s trading venue, Sigma-X.


Stewart Macbeth, DTCC managing director and CEO, Trade Information Warehouse

Data repositories enable risk mitigation

The award won by DTCC’s data repositories was in a newly created category designed to capture a range of new activities in the post-trade arena, which have become more prominent as the industry and regulators focus on risk mitigation.


DTCC’s TIW is an important feature of the new post-trade risk management structure because it provides a central location where a range of derivatives transactions can be viewed by regulators.


“DTCC’s Trade Information Warehouse has unquestionably played a critical role as a core infrastructure for the OTC derivatives market and has been at the forefront on issues related to transparency, risk reduction and global harmonization of regulatory oversight,” Donahue said.


“The last few years have clearly demonstrated the critical role that global trade repositories have in bringing greater transparency to market,” said Stewart Macbeth, DTCC managing director and CEO, Trade Information Warehouse. “This in turn allows regulators and the public to clearly assess risk exposures for market participants, as well as activity impacting underlying corporations and sovereign nations on a global basis.”


In good company

Other award-winning firms this year include BATS Preferred Clearing (Best New Clearing Service and Editor’s Choice Award); Morgan Stanley (IT Department of the Year, Sell Side); Credit Suisse (Best New Algorithmic Trading Product/Service); and Chi-X Europe (Stock Exchange/MTF of the Year). @


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