DTCC White Paper: The Future of Clearing
Mitigating Risk and Enhancing Efficiencies in the U.S. Equity and Fixed Income Markets
In The Depository Trust & Clearing Corporation’s (DTCC) Systemic Risk White Paper, President and Chief Executive Officer Michael Bodson noted, “While operational and counterparty risks still represent a major cause of concern for the industry, the reality is that systemic shocks have become more frequent, more severe and more difficult to anticipate.”
Industry leaders are no longer pondering “if” there will be another failure of the magnitude of Lehman Brothers (Lehman) or MF Global, but rather “when” it will occur and how significant the potential impact of such an event will be on the capital markets. It is therefore critical that DTCC’s business strategies and project portfolios take these emerging risks into account and plan for them accordingly to support our ongoing commitment to maintain and strengthen DTCC’s core services.
DTCC has begun developing a number of initiatives in 2014 aimed at reducing systemic risk for the capital markets, and reducing operational risk for the clients of its wholly owned subsidiaries, National Securities Clearing Corporation (NSCC) and Fixed Income Clearing Corporation (FICC). Each of these initiatives is subject to further development and discussion with DTCC’s clients and its regulators.
Download the White Paper: The Future of Clearing - Mitigating Risk and Enhancing Efficiencies in the U.S. Equity and Fixed Income Markets