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CHAPTER TWO | REGULATION, REGIONALIZATION AND REORGANIZATION
Regional Wins
There were more challenges to overcome before DTC could become that “great success.” BASIC and Dentzer had to work state by state to revise laws that would allow full participation by banks in DTC. Article 8 of the Uniform Commercial Code had limited depositories to those owned by stock exchanges and associations. By the end of 1973, some 31 states had adopted the changes, clearing the way for DTC to expand its services. Getting the remaining states on board would take more work, as Dentzer explained: The education process took a while. Some states’ insurance laws required that their state-chartered insurance companies have custody of the securities owned in the state, but we know we can get them if we need them. We made sure to explain that. If the securities are in DTC, you have the legal authority to access them. DTC had competition in the form of regional depositories as well, formed in major financial centers like Chicago, Philadelphia, Boston and San Francisco. “The idea was these depositories would relate to us and we to them,” Dentzer said. “They’re catering to broker-dealers and banks in their area.” Some banks, however, saw the power in DTC and chose to join. Boston’s State Street Bank was one of the first outside of New York to become a member of DTC. “Why shouldn’t they? There was no barrier to them,” Dentzer said. “I was delighted. I did not want to restrict DTC to just New York banks.” The relationship with regional depositories was competitive and cooperative. Depositories also had to make sure their individual technology
DTC’s Expediting Group (from left to right): Sylvia Cherry, Monica Loke, Candice Dalby, Bob Ferreira, Jim Rogers, Robert Melillo, Maureen Sullivan, Angie Williams, Maria Ruiz and Eileen Carriero.
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