I w The DTCC has several subsidiaries: The Dep
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I w
The DTCC has several subsidiaries:
Established in 1973, it was created to reduce costs and provide efficiencies by immobilizing securities and making "book-entry" changes to show ownership of the securities. DTC moves securities for NSCC's net settlements, and settlement for institutional trades (which typically involve money and securities transfers between custodian banks and broker-dealers), as well as money market instruments. In 2007, DTC settled transactions worth $513 trillion, and processed 325 million book-entry deliveries. In addition to settlement services, DTC retains custody of 3.5 million securities issues, worth about $40 trillion, including securities issued in the US and more than 110 other countries. DTC is a member of the U.S. Federal Reserve System , and a registered clearing agency with the Securities and Exchange Commission .
- National Securities Clearing Corporation (NSCC) - The original clearing corporation, it provides clearing and serves as the central counterparty for trades in the US securities markets. [25]
Established in 1976, it provides clearing, settlement, risk management, central counterparty services, and a guarantee of completion for certain transactions for virtually all broker-to-broker trades involving equities, corporate and municipal debt, American depositary receipts, exchange-traded funds, and unit investment trusts . NSCC also nets trades and payments among its participants, reducing the value of securities and payments that need to be exchanged by an average of 98% each day. NSCC generally clears and settles trades on a "T+3" basis. NSCC has roughly 4,000 participants, [26] and is regulated by the U.S. Securities and Exchange Commission (SEC).
- Fixed Income Clearing Corporation (FICC) – Provides clearing for fixed income securities , including treasury securities and mortgage backed securities [27] [28]
FICC was created in 2003 to handle fixed income transaction processing, integrating the Government Securities Clearing Corporation and the Mortgage-Backed Securities Clearing Corporation. The Government Securities Division (GSD) provides Real-Time Trade Matching (RTTM), clearing, risk management , and netting for trades in US Government debt issues, including repurchase agreements or repos. Securities transactions processed by FICC's Government Securities Division include Treasury bills , bonds, notes, zero-coupon securities, government agency securities, and inflation-indexed securities. The Mortgage-Backed Securities Division provides real-time automated and trade matching, trade confirmation, risk management, netting, and electronic pool notification to the mortgage-backed securities market. Participants in this market include mortgage originators, government-sponsored enterprises, registered broker-dealers, institutional investors , investment managers, mutual funds , commercial banks, insurance companies, and other financial institutions.
- DTCC Solutions – DTCC’s subsidiary delivering information-based and business processing solutions [ lease clarify" rel="nofollow" href="http://investorshangout.com/wiki/Wikipedia
lease_clarify"> clarification needed ] to financial intermediaries globally, such as Global Corporation Action Validation Service (GCA VS) and Managed Accounts Service. [29]
GCA VS simplifies announcement processing by providing a centralized source of "scrubbed" information about corporate actions , including tender offers , conversions , stock splits , and nearly 100 other types of events for equities and fixed-income instruments traded in Europe, Asia-Pacific, and the Americas. In 2006, GCA VS processed 899,000 corporate actions from 160 countries. Managed Accounts Service, introduced in 2006, standardizes the exchange of account and investment information through a central gateway.
- DTCC Learning – Provides financial, technology, and career training and educational services to the global financial industry. [30]
- Loan/SERV - Provides services to loan syndicates and agents.
- Deriv/SERV – Provides clearing for credit derivatives , such as CDOs . [31]
It provides automated matching and confirmation services for over the counter (OTC) derivatives trades, including credit, equity, and interest rate derivatives . It also provides related matching of payment flows and bilateral netting services. Deriv/SERV's customers include dealers and buy-side firms from 30 countries. In 2006, Deriv/SERV processed 2.6 million transactions.
- EuroCCP – European Central Counterparty Limited (EuroCCP) is the European subsidiary of DTCC that provides equities clearing services on a pan-European basis. Headquartered in London, EuroCCP is a UK-incorporated Recognised Clearing House regulated by the UK’s Financial Services Authority (FSA).
EuroCCP began operations in August 2008, initially clearing for the pan-European trading platform Turquoise . EuroCCP has subsequently secured appointments from additional trading platforms and now provides central counterparty services for equity trades to Turquoise, SmartPool, NYSE Arca Europe and Pipeline Financial Group Limited. EuroCCP clears trades in more than 6,000 equities issues for these trading venues. In October 2009 EuroCCP began clearing and settling trades made on the Turquoise platform in 120 of the most heavily-traded listed Depositary Receipts. Citi Global Transaction Services acts as settlement agent for trades cleared by EuroCCP. EuroCCP now provides clearing services in 15 major national markets in Europe: Austria, Belgium, France, Denmark, Germany, Ireland, Italy, Finland, Netherlands, Norway, Portugal, United Kingdom, Switzerland, Sweden and Spain. Trades are handled in seven different currencies: the Euro, British Pound, U.S. Dollar, Swiss Franc, Danish Krone, Swedish Krona, and Norwegian Krone. http://euroccp.co.uk/
- Omgeo – Partnership with Thomson Reuters that provides clearing automation solutions [ lease clarify" rel="nofollow" href="http://investorshangout.com/wiki/Wikipedia lease_clarify"> clarification needed ] . [32] [33]
Omgeo is a central information management and processing hub for broker-dealers, investment managers, and custodian banks. It provides post-trade, pre-settlement institutional trade management solutions [ lease clarify" rel="nofollow" href="http://investorshangout.com/wiki/Wikipedia lease_clarify"> clarification needed ] , processes over one million trades per day and serves 6,000 investment managers, broker/dealers, and custodians in 42 countries.onder if this is the same poster who thought the DTC was a lone entity. LMAO.
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