Company attributes
Other attributes
The Depository Trust and Clearing Corporation, or the DTCC, is a user-owned and governed centralized clearinghouse that helps participants with clearing services of a variety of asset classes. Founded in 1999, the DTCC comprises two subsidiaries: the Depository Trust Company (DTC) and the National Securities Clearing Corporation (NSCC). The DTCC plays a central role in settling security transactions, reducing risks, and protecting the integrity of the global financial markets.
The DTCC was founded in 1999 as a joint venture of the DTC and the NSCC. The DTC was founded in 1973 to improve the security and processing efficiency of trading paperwork, following a high volume increase of securities transactions that began in the United States during the late 1960s. The security of stock certificates was also a concern, and the NSCC was established in 1976––along with the Central Certificate Service (CCS) in 1968––to address the systematic failures in certificate delivery and security resulting from the increased trading volume. Since the DTCC's founding, the DTC and NSCC have been its subsidiaries.
The DTCC is involved in trillions of securities transactions daily. When securities are ordered through a professional broker, the trade information is provided to the NSCC or an equivalent clearing company. After the trade is executed, the NSCC generates a report for the broker and other professionals involved. The report includes the amount due and the positions of the net securities post-trade. The NSCC provides the DTCC with settlement guidelines, and the DTCC in turn ensures a seamless transfer of funds from buyer to seller while the broker adjusts the clients' account balances.
Other than the DTC and the NSCC, the DTCC has several other subsidiaries and businesses dedicated to various trading purposes.
The DTCC Derivatives Repository Plc (DDRL) operates under the supervision of the United Kingdom's Financial Conduct Authority (FCA) and ensures that investment firms comply with the regulatory reporting rules as written in the European Market Infrastructure Regulation (EMIR) and the Securities Financing Transactions Regulation (SFTR).
The DTCC has multiple data repositories in different countries, including the United States, Ireland, Japan, and Singapore. Like the derivatives repository, they each enforce their country's rules regarding regulatory reporting.
DTCC Deriv/SERV LLC provides automated repository and asset servicing for over-the-counter (OTC) trades of credit derivatives, plus related matching of payment flows and bilateral netting services.
DTCC Solutions LLC delivers information-based and business processing solutions to financial intermediaries around the world.
DTCC Institutional Trade Processing (DTTC ITP) is an operations business unit of DTCC that automates post-trade life cycle events across 6,000 different financial services firms in fifty-two countries. This accelerates the clearing and settlement of trades by connecting and interoperating with other firms.
The Fixed Income Clearing Corporation (FICC) was established in 2003 with the purpose of reducing costs for DTCC customers and providing them with a common approach to fixed income transaction processing through the integration of both the Government Securities Division (GSCC) and the Mortgage-Backed Securities Division (MBSD). The GSD is a subsidiary of the FICC that provides real-time trade matching, clearing, risk management, and netting for trades regarding US government debts, like repossessions. GSD also processes securities transactions, including Treasury bills, bonds, notes, and more. MBSD also provides real-time trade matching, confirmation, risk management, netting, and electronic pool notification to the market of mortgage-backed securities.
