Considine Calls for Formation of Disaster Recovery Network
Byline: Phillipa Leighton-Jones
Jill Considine, chairman and chief executive of the Depository Trust & Clearing Corporation, the US clearing and settlement agency, is drumming up support for a disaster recovery network to be shared by the world's settlement houses. In her annual report, she says the threat of both natural disasters and terrorism must prompt an agreement to share and outsource capacity between depositories. 'The nature of this threat suggests the need for new strategies for ensuring the continuity and safety of what is essentially the central nervous system of the global financial services industry.'
She adds: 'As Europe consolidates and grows its equity market and Asia wrestles with its growing trading volumes, must each market develop its own excess capacity? Perhaps it's time to consider a post-trade infrastructure model that offers virtual capabilities worldwide 24 hours a day, seven days a week.'
The DTCC has capacity to process 60 million transactions a day post netting, but on average, it processes only 19 million. Considine is pushing for such redundancy to form the backbone to a worldwide business continuity network. …