50
THE STORY OF THE DEPOSITORY TRUST & CLEARING CORPORATION
interactive ID. The firm borrowed 11 employees from participating banks and brokers to help train 10,000 ID users to take full advantage of the new system and its speed. DTC processed nearly 3 billion shares—a heavier volume than normal—during the three-day period in which it converted its settlement system from five days to three. In June 1995, the SEC began requiring the three-day settlement process. Thanks to the broad industry effort that DTC and NSCC had led to prepare
In February 1993, a bomb- laden truck exploded in the basement-level parking garage of the World Trade Center’s North Tower, killing six people and injuring 1,000. (Photo by Documerica courtesy of Unsplash.)
for this change, the conversion occurred very smoothly—two days of risk had been taken out of the equation.
A Bomb Rattles Wall Street
Yet another risk emerged when the World Trade Center was bombed in February 1993. A truck bomb exploded in the parking garage of the North Tower, killing six and injuring more than 1,000. The masterminds of the terrorist attack had hoped to cause the building to collapse and to bring down the adjacent South Tower with it. DTC recognized that this might not be an isolated incident and was prescient enough to act. It opted to open a backup data center and an alternative operations site, should something
1996 FEBRUARY
1997 NSCC begins its Insurance Services business. This would bring operational and cost efficiencies to the processing of annuities.
1997 Participants deliver
1998 After the 1993 World Trade Center bombing, DTC opens a backup data center in Brooklyn, where it also establishes an alternative operational site.
$62 trillion of securities through the depository’s book-entry system, up 24 percent over the previous years. Securities in its custody grow to $15.4 trillion, up 27 percent.
DTC moves to same-day funds settlement, working alongside NSCC.
Made with FlippingBook. PDF to flipbook with ease