Apr 04, 2013
• DTCC Connection
First Non-Domestic Firms Become Members Of Government Securities Division
by Bari Trontz
Murray Pozmanter, DTCC Managing Director and General Manager, Clearing Services
DTCC announced the first non-domestic members of the Government Securities Division (GSD). Mitsubishi UFJ Trust and Banking Corporation and The Bank of Tokyo-Mitsubishi, UFJ, Ltd, are now active GSD members, reflecting DTCC’s growth and expansion in the global marketplace. GSD is a division of the Fixed Income Clearing Corporation (FICC), a subsidiary of DTCC.
“We are pleased to welcome Mitsubishi UFJ Trust and Banking Corporation and The Bank of Tokyo-Mitsubishi, UFJ, Ltd, as our first non-U.S. members of the Government Securities Division,” said Murray Pozmanter, DTCC Managing Director and General Manager, Clearing Services. “As DTCC continues to extend its worldwide footprint, we remain committed to strengthening our ability to manage risk and safeguard the global capital markets, while bringing clients innovative and effective tools to help grow their respective businesses.”
The Securities and Exchange Commission approved FICC’s proposed change to the GSD rules in 2009 to allow for direct membership of non-domestic entities. The rule change was prompted by modifications in U.S. bankruptcy laws that resulted in federal safe harbors expanding to apply to non-domestic entities that do not have an established U.S. branch or agency. The new law provides protection for the enforcement of FICC’s ability to access collateral held by FICC from the non-domestic member firm in the event of that firm’s insolvency.
“We are pleased to be the first non-U.S. firm to be granted membership to FICC’s Government Securities Division,” said Hisashi Kanamori, General Manager of the Treasury Division of Mitsubishi UFJ Trust and Banking Corporation (MUTB). “Membership brings enhanced risk management tools and operational efficiencies to MUTB through access to GSD’s central counterparty which guarantees all eligible trades.”