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THE STORY OF THE DEPOSITORY TRUST & CLEARING CORPORATION
were constantly top of mind. It was vital for financial firms to develop contingency plans for their organizations. DTCC and its subsidiaries, DTC and NSCC, certainly had their own contingency plans in place, but no amount of planning could prepare the organization for what was unimaginable. The criticality of the role of DTCC in overcoming the looming threat to the global markets, US market and the US economy cannot be overemphasized. The movement of money and the ability to communicate clear direction were the highest priorities on that fateful day. Immediately put to the test was the relationship between DTCC and the Federal Reserve to ensure settlement payment could be accomplished. While the world financial markets froze in the aftermath of the attack, trading never began at the US exchanges. And at the London Stock Exchange, trading stopped until word came through that DTCC was settling payment obligations. Successfully managing the complexity and volume of calls between DTCC, the Federal Reserve and major banks, brokerage firms and corporations was critical. Throughout the halls of DTCC, the attacks created understandable chaos. Were employees safe? Were their families safe? After a few minutes for leadership and staff to gather themselves, the thoughts quickly turned to the day’s task—settling. John Faith, managing director, Global Business Operations, said of DTCC’s response: In those instances, we certainly go above and beyond, but what we do on a daily basis is critical to protecting the safety of the markets, which is why, organizationally, we adapt so well to crisis. It’s something that every employee learns early on, and then from time to time, there are events that reinforce that for us.
2001 The Depository Trust &
2001 Standard & Poor’s awards AAA ratings to The Depository Trust Company (DTC) and National Securities Clearing Corporation (NSCC). The ratings would be reaffirmed the week of 9/11.
2001 APRIL
2001 SEPTEMBER In the week after the
Clearing Corporation (DTCC) fees generate $819 million
Wall Street makes the switch from trading in fractions to trading in decimals. Most of the changes required by DTCC subsidiaries would be implemented during reprogramming as part of the Y2K initiative.
terrorist attacks on 9/11, DTCC settles $1.8 trillion in securities transactions.
in revenue, down from $914 million in 2000
because of a reduction in fees. DTCC also returns $177 million in discounts and rebates to its customers.
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