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THE STORY OF THE DEPOSITORY TRUST & CLEARING CORPORATION
and exposures to both member defaults and non-default events. This meant planning for the “what if” scenario of the default of a single, large member and subsequent impact to the clearing agencies’ financial resources. It also meant planning for the stress arising from the default of multiple members and the aftershocks of “tail” events sequenced over several days. Meeting regulatory hurdles enacted by Congress lined up with DTCC’s timeline and overarching mission. One key area under regulatory review was instituting a framework for resolving clearinghouse insolvency. The effort would be undertaken by multiple regulators and was at the heart of one of DTCC’s goals: to reduce systemic risk within the industry. In the spirit of collaboration, DTCC worked with lawmakers, regulators and other industry partners in the United States, Europe and Asia to help shape global legislative and regulatory policies on these critical issues. Taking the initiative on the new regulations allowed DTCC to showcase its commitment to its clients and to help them make the most of the changes that had been enacted. Murray Pozmanter, former managing director, president of
Passed by the House of Representatives in 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed by President Obama on July 21. Some of these new federal regulations on the financial services industry greatly impacted DTCC’s operations. (Photo by Louis Velazquez courtesy of Unsplash.)
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