Academic journal article ABA Banking Journal

DTCC's Experience in Attacks Affirms the System's Strengths

Academic journal article ABA Banking Journal

DTCC's Experience in Attacks Affirms the System's Strengths

Article excerpt

IN OUR COVERAGE LAST MONTH OF SEPT. 11's attacks we mentioned how one key payment system player, the New York Clearing House, weathered the crisis remarkably well. Less well known is how another vital component of the global financial infrastructure, the Depository Trust Clearing Corp., fared during the crisis. DTCC, which is headquartered in lower Manhattan, deliberately kept a Low profile during and after the attacks. That is not a reflection of major problems, however. On the contrary, the facility functioned well.

DTCC, through its two main subsidiaries, the Depository Trust Co. and the National Securities Clearing Corp., handles clearing, settlement, custody, and related "back office" functions for a high percentage of securities transactions, including mutual fund transactions. The corporation is owned by its principal users--major banks, broker/dealers, and other financial services companies including the New York Stock Exchange.

Spokesman Stuart Goldstein, managing director for corporate communications, says that the day of the attacks DTCC remained open and, in fact, reached settlement for trades of the previous two trading days (the 10th and the 7th of September). While this was partly the result of having operations centers in multiple locations in and out of New York City (and overseas), as well as a result of the continuous net settlement system DTCC uses, Goldstein points out that the U.S. financial system as a whole has rules and infrastructure in place which give it the ability to effect settlement even under the most dire circumstances. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.