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The Real DTCC Discussion

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Last Post: 10/18/2016 2:31:41 PM - Followers: 164 - Board type: Free - Posts Today: 0



Overview



DTCC, through its subsidiaries, provides clearing, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks.

DTCC's depository provides custody and asset servicing for 3.6 million securities issues from the United States and 121 other countries and territories, valued at almost $34 trillion. In 2009, DTCC settled more than $1.48 quadrillion in securities transactions.

DTCC operates through 10 subsidiaries - each of which serves a specific segment and risk profile within the securities industry:


- National Securities Clearing Corporation (NSCC)
- The Depository Trust Company (DTC)
- Fixed Income Clearing Corporation (FICC)
- DTCC Deriv/SERV LLC 
- The Warehouse Trust Company LLC
- DTCC Derivatives Repository Ltd.
- DTCC Solutions LLC
- DTCC Loan/SERV LLC
- EuroCCP Ltd.
- Avox Ltd.


This forum is a place for ALL to share and build research and due diligence in the context of the DTCC, it's policies and their impact on securities.
This is not a forum for recommending stocks to buy or sell. It is for information sharing only.
Please do not use this forum to promote stocks.


Please start all informational posts with the ticker symbol of the stock followed by the actual company name as it appears on the OTC.
A few simple rules to follow:

1: You cannot discuss other posters or try to attack them. TOU still is applied here.

2: BRING FACTS. No flame wars. Be mature and respect the DD that is done regardless of what you think of it, also NO NSS DISCUSSION..PERIOD!!!!

3: We do not give advice for buying or selling the stock you are interested in. We only find information that pertains to the DTCC and the restrictions they place upon securities.

4: If you ask for some DD on a company, don't expect a rose garden of an answer. Not going to happen.

5: I am in no way affiliated with the DTCC, nor do I know anyone associated with the DTCC, this is simply subject matter expertise using documents from the DTCC and other sources regarding the DTCC and it's actions.

"DTCC Media Statement on Clearance and Settlement

New York, January 3, 2012 - The Depository Trust & Clearing Corporation (DTCC) today issued the following media statement in response to inquiries, occasioned by a recent article in The New York Times, which mentioned the process of clearing and settling trades in the U.S. securities markets:

About DTCC

DTCC is a holding company for several regulated subsidiaries, including The Depository Trust Company (DTC), Fixed Income Clearing Corporation (FICC) and National Securities Clearing Corporation (NSCC). These subsidiaries provide centralized clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities and money market instruments traded in the U.S. capital markets.

DTCC's core mission is to manage and mitigate risk for issuers and investors and their financial intermediaries. To achieve this mission, DTCC has helped to automate, standardize and streamline processes that are critical to the safety and soundness of the capital markets.

In the normal course of business, DTCC handles member firms' payments of funds related to two key activities: the settlement of transactions entered into by members on behalf of both their customers and their own accounts, and the deposit of collateral ("margin") in relation to DTCC's subsidiaries' role as the central counterparty for the U.S. securities markets.

Clearance and Settlement

Centralizing the process of clearing and settling transactions through NSCC or FICC is a critical component of today's highly efficient securities markets. Through these centralized processes, trades are cleared - matching the "buy" and "sell" sides of trades - and settled (the buyer receiving securities and the seller the related payment for the transaction). Similarly, the payments for transactions are processed through a centralized system.

After a transaction is executed, the details are reported to NSCC (for equities, corporate and municipal bonds and money market instruments) or FICC (for government and mortgage-backed securities). The applicable subsidiary becomes the "central counterparty" to the trade, guarantying completion of the transaction if either the buyer or seller is unable to fulfill its part of the contract.

NSCC settles trades through DTC's centralized book-entry system (FICC settles trades through the Federal Reserve's National Book Entry System). Selling parties deliver securities to buying parties through DTC against an obligation to pay funds for the transaction. A member's payment obligations (amounts it owes and amounts it is owed) are accumulated throughout the settlement day, and result in a final payment processed at the end of the day (from the member to DTC or from DTC to the member) equal to the total of these payment obligations.
Counterparties cannot withhold cash or securities from trades, or no settlement occurs. DTC itself is not involved in deciding how payments are processed or who receives what amounts; further, the total of settlement moneys received from members by DTC equals the total settlement payments DTC makes to other members, with none of these moneys retained at DTC. Payments may relate to transactions settled on behalf of a member firm's customers or transactions for the firm's own account; this transactional information is not reported to DTC.

Securing the Trade Guaranty

As a central counterparty, NSCC or FICC guarantees a member's performance on trades reported to the clearing house. To provide underlying security for this guaranty, NSCC and FICC require members to post Clearing Fund deposits (or margin) collateralizing their guaranteed trades.

DTCC constantly reviews and assesses the amount of collateral (cash and/or securities) required to be posted from each firm. As DTCC's subsidiaries guarantee each trade, the amount of collateral required can vary throughout the day, depending on trading volume, market volatility and a view of the potential risk of a default by a particular member firm.

Clearing Fund deposits and payments relating to transaction settlements are handled through completely separate processes and are not commingled; all deposits and payments are kept separate and distinct. In addition, when a firm sends funds through DTCC to complete its transactions and settle trades, DTCC does not "hold back" any funds for purposes of collateral or margin - all funds are remitted to the parties to whom they are due.

About DTCC
The Depository Trust & Clearing Corporation (DTCC), through its subsidiaries, provides clearing, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC's depository provides custody and asset servicing for 3.6 million securities issues from the United States and 121 other countries and territories, valued at almost $34 trillion. In 2010, DTCC settled more than $1.66 quadrillion in securities transactions"


http://www.dtcc.com/news/press/releases/2012/media_statement_clearance_settlement.php


 
PostSubject
#1608  Sticky Note New Links for Chills and Global Locks BigBake1 11/03/14 08:38:28 AM
#1406  Sticky Note Educational Posts BigBake1 02/23/14 08:54:00 AM
#1348  Sticky Note Complete list of "CUSIP's to be exited from BigBake1 01/14/14 04:36:48 PM
#1330  Sticky Note DTCC Whitepaper on Service Restrictions (Chills and Global Locks) BigBake1 12/18/13 10:59:47 AM
#1303  Sticky Note The Big Questions and some examples BigBake1 12/02/13 08:37:01 AM
#52  Sticky Note Just thought I would post this. jbsliverer 02/17/12 01:28:53 PM
#1710   That's what I thought, as that's what I've slojab 10/18/16 02:31:40 PM
#1709   Since March 2012 the "chill" has very little BigBake1 10/18/16 02:28:08 PM
#1708   Hi Big. Can you explain the problem slojab 10/17/16 10:24:24 AM
#1707   Is $50 Billion the Price of Repo Safety? sludgehound 12/09/15 07:30:07 PM
#1706   It is a little premature to say how BEANPOLE 11/03/15 08:22:29 PM
#1705   The only entity that "helped" was the Transfer BigBake1 11/03/15 08:15:01 PM
#1704   This CRGP story is far from over and BEANPOLE 11/03/15 08:08:10 PM
#1703   Based on what negligence? They only entities that BigBake1 11/03/15 08:00:40 PM
#1702   I would not be a bit surprised to BEANPOLE 11/03/15 07:27:12 PM
#1701   STOA 1:1000 RS / one of asher toxic funder mick 09/03/15 09:18:51 AM
#1700   Correction,J.S. i do appreciate this/////\\\\\ mick 09/01/15 04:04:59 PM
#1699   No, it isn't fishy. The company's bankruptcy janice shell 09/01/15 03:49:28 PM
#1698   hi my friend, little chat time if no mind. mick 09/01/15 03:12:51 PM
#1697   Thanks. jimtash 08/30/15 08:38:49 PM
#1696   Nothing prevents trading, the problem is clearing, without BigBake1 08/30/15 04:55:07 PM
#1695   How can a stock that's locked have volume jimtash 08/30/15 09:59:00 AM
#1694   The real question is, when was it chilled BigBake1 08/18/15 05:44:09 PM
#1693   Would you please check to see if MNGG PLUTUS 08/17/15 10:25:31 PM
#1692   Daily Short Volume ;-) lol Weird·o 07/23/15 09:55:45 PM
#1691   No, only if they register a class of BigBake1 06/20/15 04:16:48 PM
#1690   Quick question. Are securities registered under the 1933 Don 06/20/15 03:25:57 PM
#1688   SEC officials demand new rules for stock transfer agents sludgehound 06/12/15 09:49:49 PM
#1687   Re: Objection to the Imposition of the Deposit Lock stockmasterflash 06/12/15 07:09:02 AM
#1686   In Lehman's last days, Merrill may have allowed sludgehound 06/02/15 02:00:48 PM
#1685   SEC charges Merrill, fines $11M short sales tricks sludgehound 06/01/15 03:13:50 PM
#1684   Article on OTC definitions & changes sludgehound 05/06/15 03:13:59 PM
#1683   article on Apex robo advisors & clearing sludgehound 05/01/15 10:12:48 AM
#1682   FT: headline about DTCC raising $400m sludgehound 04/14/15 11:13:27 PM
#1681   Excellent, thanks. FedUpToHere 04/14/15 09:23:51 AM
#1680   Yes the DTTC sends the company a formal BigBake1 04/14/15 09:22:10 AM
#1679   BigBake I have a final followup question if FedUpToHere 04/14/15 08:49:54 AM
#1678   Couple reminders from a board sludgehound 04/13/15 08:50:24 AM
#1677   The only way you are going to lift BigBake1 04/12/15 02:33:19 PM
#1676   Perfect, thanks for the help, appreciate it much. FedUpToHere 04/12/15 02:30:41 PM
#1675   No it was never removed, it is an BigBake1 04/12/15 02:27:02 PM
#1674   BigBake, can you help me out here. In FedUpToHere 04/12/15 10:06:43 AM
#1673   IGNT The fee for this matter will be based stockmasterflash 03/27/15 01:26:12 PM
#1672   Thanks for the expl! ipulator_man 03/24/15 10:56:15 PM
#1671   Yeah, but I noticed FINRA has changed their BigBake1 03/24/15 07:52:44 PM
#1670   and the way they handled it skewed the volume... ElisComing 03/24/15 07:46:41 PM
#1669   Agree, there was a reporting problem, out of BigBake1 03/24/15 07:45:22 PM
#1668   There was evidently an OTC reporting glitch between ElisComing 03/24/15 07:21:45 PM
#1667   I noticed today that numerous OTC stocks have trader guy 03/24/15 06:53:45 PM
#1666   Just posting a new link for the Global BigBake1 03/16/15 06:37:12 PM
#1665   27-Yr-Old Made Millions Riding Death Spirals of Penny sludgehound 03/12/15 08:53:35 AM
#1664   RBDC is showing a bid and ask. Has jimtash 03/01/15 11:36:48 AM
#1663   Does Nasdaq short interest include my shares (that learning curve 02/04/15 05:26:04 PM
#1662   Oppenheimer SEC today sludgehound 01/27/15 03:59:22 PM
#1661   P&D by EPAZ, reminder of risks, story sludgehound 01/22/15 06:48:26 PM
#1660   Thanks you. Appreciate your help. comb 01/13/15 07:21:04 AM
PostSubject