Skip to main content

Congressional Testimony

Mark G. Clancy, Managing Director and Corporate Information Security Officer | June 1, 2012

Chairman Garrett and Ranking Member Waters.

Thank you for scheduling today’s hearing on the important issue of cyber security and the U.S. capital markets. The Committee’s strong leadership on this issue has been critical in helping to raise awareness of the serious threats posed by cyber-attacks on the financial system and fostering dialogue among the private and public sectors on effective strategies to minimize these risks.

My name is Mark Clancy, and I am the Corporate Information Security Officer at The Depository Trust & Clearing Corporation (“DTCC”). DTCC is a participant-owned and governed cooperative that serves as the critical infrastructure for the U.S. capital markets as well as financial markets globally. Through its subsidiaries and affiliates, DTCC provides clearing, settlement and information services for virtually all U.S. transactions in equities, corporate and municipal bonds, U.S. government securities and mortgage-backed securities and money market instruments, mutual funds and annuities. DTCC also provides services for a significant portion of the global over-the-counter (“OTC”) derivatives market.

To provide insight into the criticality of DTCC’s role in the safe and efficient operation of the U.S. capital markets, in 2010, the Depository Trust Company (“DTC”) settled more than $1.66 quadrillion in securities transactions. Furthermore, three DTCC subsidiaries last month received notifications from the Financial Stability Oversight Council (“FSOC”) of proposed determinations to designate them as systemically important financial market utilities. The subsidiaries are National Securities Clearing Corporation (“NSCC”), the clearing and settlement subsidiary for equities and corporate and municipal fixed income securities, Fixed Income Clearing Corporation (“FICC”), the clearing and settlement subsidiary for U.S. Treasury, Agency and Government-Sponsored Enterprise mortgage-backed securities, and DTC, the depository subsidiary. DTCC itself, as the parent and holding company of these subsidiaries, did not receive a letter, and it does not expect one. As the primary infrastructure responsible for the clearance and settlement of nearly all securities traded in the US cash markets, these DTCC subsidiaries play critical roles in mitigating risk and ensuring the safe and seamless operation of the U.S. capital markets.

Download the Congressional Testimony: Testimony before House Committee on Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises