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THE STORY OF THE DEPOSITORY TRUST & CLEARING CORPORATION
trades. The firm met new reporting requirements for over-the-counter (OTC) derivatives through its growing Global Trade Repository infrastructure. DTCC also launched a new utility to support derivative reporting requirements and expanded more deeply into mutual funds. The firm’s continued growth into new markets and asset classes was a result of DTCC’s long-held culture of enhancing value to new and existing clients by providing services that would meet their evolving needs and address pain points. In some instances, this meant supporting its clients’ global goals. In others, it meant providing related solutions to their expansive portfolios.
In 2018, The Depository Trust Company, National Securities Clearing Corporation and Fixed Income Clearing Corporation filed recovery and wind-down plans with the US Securities and Exchange Commission (SEC) that explained how the firm would respond to another financial crisis. Pictured is the SEC’s headquarters in Washington, D.C. (Photo by APK courtesy of Wikimedia Commons.)
Susan Cosgrove, managing director, president of Clearing & Securities Services, described how the firm goes about exploring new markets: One of the ways we grow our business is through “logical adjacencies.” It simply means diversifying into businesses that are related to a segment of our current operations. If something is logically adjacent to what we’re doing, then we can grow into that as a business. For example, implementing a business to match corporate bond trades would be a logical adjacency because we already do it for equities. The next step is assessing the marketplace, performing due diligence and
engaging with our clients and other industry stakeholders to gauge interest and support.
2011 APRIL The Depository Trust &
2012 MARCH
2012 JULY National Securities Clearing Corporation (NSCC), The Depository Trust Company and Fixed Income Clearing Corporation are designated as systematically important financial market utilities as part of the Dodd-Frank Act. This requires the three DTCC subsidiaries to meet prescribed risk management strategies.
2013 MAY DTCC aligns with Euroclear, a leading post-trade services provider headquartered in Belgium, to manage holdings as a single collateral pool. The alignment is another outgrowth of regulations that would come as a result of the Great Recession.
The US Securities and Exchange Commission approves DTCC’s application to launch a central counterparty service for mortgage-backed securities. The goal is to lower costs and risks for customers.
Clearing Corporation (DTCC) splits the roles of chairman and CEO. Robert Druskin becomes executive chairman.
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