The Depository Trust & Clearing Corporation’s (DTCC) 2015 Annual Report, released today, provides insights into the initiatives, events and drivers that are enabling the firm to grow its support for the industry and take on a larger role helping its clients meet new challenges during this period on transformation.
The all-digital Annual Report, titled “One DTCC: Leveraging Our Global Assets,” reflects the increased value that DTCC is delivering to clients and the industry by operating as a unified, dynamic, global organization that is leveraging its collective assets across the post-trade lifecycle.
“For some businesses, being in the right place at the right time is a matter of good fortune. But for DTCC, leaving things to chance is not in our DNA,” said Michael Bodson, DTCC President and CEO, in his Letter to Stakeholders. “Our ‘One DTCC’ vision is allowing us to deliver on an expanded mission to protect the global financial system and create innovative solutions that allow us to support new markets, expanded asset classes and a wider range of clients.”
In 2015, DTCC continued to pursue critical initiatives for the industry that further reduce risks and costs in the U.S. clearing and settlement system, such as advancing the development of a Centrally Cleared Institutional Tri-Party Repo Service, completing the multi-year Settlement Matching project and launching the latest phase of its Corporate Actions (CA) transformation initiative. The firm also made progress in creating an end-to-end centralized collateral settlement utility through its DTCC-Euroclear GlobalCollateral Ltd. joint venture and also continued to grow adoption of Clarient Entity Hub, which helps manage client data for client onboarding, Know Your Customer, trading and regulatory reporting enrichment.
Transforming Client Service
As DTCC broadens its role supporting the industry, it is transforming how it engages with clients and how clients engage with DTCC. Toward that end, DTCC refreshed its brand architecture, repositioning Avox® and Omgeo as product suites under the DTCC brand to reflect their alignment with existing DTCC services. The firm also organized its offerings into 6 new categories to simplify and clarify the wide breadth of solutions it provides.
In addition, DTCC completed several key projects, including the launch of new client web interfaces, the phased rollout of an improved client onboarding process and an enhanced model that will empower client service agents to deliver end-to-end support through ultimate resolution.
Commitment to Collaboration
A large part of the “One DTCC” vision is collaborating with industry stakeholders to raise awareness of emerging issues and proactively drive innovation and thought leadership. As an example, DTCC continued its partnership with industry colleagues in 2015 on shortening the U.S. settlement cycle for equities, corporate and municipal bonds and unit investment trust trades from T+3 to T+2 – one of the most significant changes to the settlement process in decades. This multi-year effort culminated in 2015 with the release of a white paper by the Shortened Settlement Cycle Industry Steering Committee (ISC), which outlined the timelines and activities for moving to a two-day settlement cycle before the end of 2017.
Focused on the Future
In his Letter to Stakeholders, Bodson thanked the DTCC Board of Directors and clients for their support and shared his committed to continue supporting clients and the industry in 2016 and beyond.
“As we look to 2016, it is clear that we are well positioned for the future, but our success is not guaranteed or inevitable,” he said. “We have steered ourselves to the right place at the right time, and we are determined to make the most of this opportunity. As ‘One DTCC,’ we are excited to move forward in our journey and ready to deliver even greater value by leveraging our global assets on behalf of our clients and the global industry.”