It's clear that securities trading just wouldn't be the same without The Depository Trust & Clearing Corporation (DTCC). Through subsidiaries, the firm provides securities clearing, settlement, custody, and information services. Dealing in equities, bonds, government and mortgage-backed securities, money market instruments, and over-the-counter derivatives, the company typically processes around 90 million securities transactions each day, or more than 20 billion per year. Its depository business provides custody and asset servicing for some $34 trillion worth of securities globally. DTCC is owned by its users, which include banks, brokerages, and NYSE Euronext.
DTCC was established in 1999 when operating companies The Depository Trust Company (DTC) and the National Securities Clearing Corporation (NSCC) -- both of which were founded in the 1970s -- were combined under a single holding structure. DTC is one of the world's largest securities depositories and a clearinghouse for trading settlement, while NSCC processes broker-to-broker equity, corporate, and municipal bond trades in the US.
The company also has subsidiaries or joint ventures focused on services for fixed-income, lending, and alternative products, as well as government and mortgage-backed securities. Omgeo, a joint venture with Thomson Reuters, develops trade-processing software. In 2011 DTCC entered into a joint venture with NYSE Euronext to provide clearing, settlement, and risk management services for US fixed-income securities and derivatives.
DTCC had a $979 million deal in place to acquire UK-based LCH.Clearnet, a move that would have created the world's largest clearinghouse with trans-Atlantic capabilities. However, a counterbid from ICAP delayed the acquisition, which was subsequently called off.
Undaunted, DTCC is seeking other opportunities for expansion. It formed a new subsidiary, The Warehouse Trust Company, a global repository that records over-the-counter credit swaps. To foment international growth, it acquired UK data business Avox in 2010. – less