Mar 04, 2014
• DTCC Connection
DTCC Limit Monitoring Tool Enhances Transparency While Mitigating Risk
By Randy Spencer
The Depository Trust & Clearing Corporation (DTCC) filed a proposed rule change with the Securities and Exchange Commission (SEC) to provide its members with a new tool designed to serve as an early warning system that alerts those firms to trading activity that is nearing defined trading limits.
The DTCC Limit Monitoring tool is designed to help identify unusual trading activity and trading limit breaches. Subject to regulatory approval of the filing, the tool will enable firms to effectively manage potential risk exposure for both their own accounts and their clients’ accounts for the trading in equities, corporate and municipal bonds, and unit investment trust instruments
Pawel Pieczara, Director of Equities Clearing at DTCC, discusses the DTCC Limit Monitoring tool in more detail including its benefits and how it will function.