It has been two decades since The Depository Trust & Clearing Corporation (DTCC) opened in London, its first office outside the U.S. That expansion occurred because DTCC needed to address the post-trade requirements of clients who were rapidly expanding their footprints in Europe.
Today, DTCC continues to increase its support for European financial market participants with a growing workforce across DTCC’s primary European locations in London and Wrexham. DTCC is on target to employ 700 people in the UK by the end of this year – an increase of 40% over 2014.
“Financial markets are changing at a pace never before witnessed,” said Michael Bodson, President and CEO at DTCC. “Economic and regulatory pressures, new technologies and the growing interconnectedness of financial firms are transforming market structures and sparking changes to the industry’s operating model and its global view of risk management.”
In the past 20 years, DTCC has continued to invest in its European and UK operations. In 2001, DTCC further grew its presence when it partnered with Thomson Reuters (formerly Thomson Financial) to create Omgeo, a joint venture focused on streamlining post-trade operations—trade matching and confirmation and standing settlement instructions (SSIs). DTCC fully acquired Omgeo in 2013, facilitating a unified strategy around industry initiatives such as the SSI Utility.
In 2014, DTCC’s Global Trade Repository (GTR) began supporting European Market Infrastructure Regulation (EMIR) regulatory reporting requirements. The GTR family of repositories is now the leading source of data for all derivative asset classes globally. In addition, DTCC remains part of EuroCCP, now a joint venture with ABN AMRO Clearing Bank, BATS Chi-X Europe and Nasdaq. Today, it is the largest equities central counterparty in Europe by the volume of trades cleared. Both the GTR and EuroCCP have significant European client bases that are supported by DTCC’s growing workforce.
Wrexham has served as a cornerstone for DTCC’s expansion beginning with the 2010 acquisition of Avox, the industry leader in legal entity reference data. The office became the base for the development and launch in 2012 of the Global Markets Entity Identifier (GMEI®) utility, the largest issuer of legal entity identifiers. GMEI is a product offered by DTCC in collaboration with SWIFT. It also serves as the European Operations Centre for Clarient Global, launched last year as a joint venture with Barclays, BNY Mellon, Credit Suisse, Goldman Sachs, JPMorgan Chase and State Street. Clarient offers a comprehensive client data management and Know Your Customer (KYC) utility for the industry.
When Paul Barlow, Avox Chief Operating Officer started working for Avox back in 2006, the Wrexham-based firm employed a modest 40 staff. Fast forward nearly a decade and the DTCC site-lead now oversees a workforce of more than 450. DTCC, a global financial services firm, has capacity for another 200 workers at its Redwither Business Park base, Wrexham, UK.
A key ingredient to the company’s success is that despite a surge in staff numbers, employees enjoy a collaborative environment. Paul said: “People come in, work hard and are doing a fine job – and we want to keep it that way. “We want to keep the small business atmosphere. The turnover rate of staff is only 7% so we must be doing something right.”
“Financial market infrastructures like DTCC are playing a more prominent role than ever before because of our track record in centralizing, standardizing and automating post-trade, clearing and settlement processes to mitigate risk, reduce costs and enhance operating efficiencies,” Bodson said. “DTCC’s London and Wrexham offices are important for our future development as it allows us to look at opportunities holistically, understand the perspectives of different market participants across regions and offer our global client community innovative new solutions.”