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THE STORY OF THE DEPOSITORY TRUST & CLEARING CORPORATION
Despite the uncertainty, the expanded role for CCS quickly proved its worth. CCS outlined several key facets, including a corporate structure and a commitment to technology investments. Even with those foundations in place, it would still take several years and steps for CCS to fully move into its role as a national depository. To do so meant changing laws on a state-by-state basis while convincing banks and securities dealers to commit to the new process.
Learning the BASICs
BASIC’s leadership was comprised of three large bank CEOs and representa- tives of the three main exchanges. It had its own staff as well. Herman Bevis, who had just retired as CEO of Price Waterhouse, was tapped as executive director. Bill Jaenike, who worked for AMEX, was assigned to handle the technology. Jaenike was up front with Bevis about his knowledge—or lack thereof— about the certificate process. “I said, ‘Mr. Bevis, to tell you the truth, I don’t know the difference between a stock and a bond,’” he recounted in a 2011 interview with the US Securities and Exchange Commission (SEC) Historical Society. “He said, ‘You’re just the guy I want.’ We were off to the races at that point.” Before taking the role, Jaenike had been told that working with Bevis was “like getting a master’s in the securities business.” As the two worked together, Jaenike quickly realized that was incorrect. “It was like getting your Ph.D., not just in the securities industry, but also in how to live your life.”
1971 SEPTEMBER
1972 JUNE William Dentzer is named chairman and CEO of Central Certificate Service (CCS). Dentzer had recently resigned as the New York State Superintendent of Banks.
1972 OCTOBER CCS launches as a subsidiary of NYSE. By the end of the year, CCS would have more than 1 billion shares on deposit, totaling a value of more than $50 billion.
1973 MAY CCS becomes The Depository Trust Company (DTC). In October, DTC would move its offices
The Banking and Securities Industry Committee (BASIC) announces a memorandum of understanding signed by the New York and American Stock Exchanges (NYSE and AMEX), the National Association of Securities Dealers (NASD) and the 11 member banks of the New York Clearing House Association.
to 55 Water Street in New York City.
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