DTCC Announces Effort to Correct Record on Its Stock Borrow Program & Naked Short Selling
Wednesday March 30, 4:39 pm ET
NEW YORK--(BUSINESS WIRE)--March 30, 2005--The following statement was issued today by Stuart Z. Goldstein, managing director of DTCC Corporate Communications and spokesperson for the company:
"The Depository Trust & Clearing Corporation (DTCC) has provided its bank and broker customers with a detailed explanation of its Stock Borrow program and the issue of naked short selling in an effort counter a widespread campaign of distortions and misleading information.
DTCC has published a Q&A interview with our First Deputy General Counsel in its own newsletter, @dtcc, which is distributed to over 7,000 readers throughout the financial services industry. Our aim is simply to correct misstatements of fact. We have confidence that our regulators, who carefully review our activities, understand that short selling is a trading strategy and is not related to the post-trade clearance and settlement process.
We've made the Q&A interview available on DTCC's web site at www.dtcc.com, so journalists and investors can get a more accurate understanding of our role in the completing the trading process. It is a highly automated environment that can handle in a given day up to 4.6 billion shares traded across all U.S. markets."
We believe that those involved in the litigation on naked short selling have been part of these efforts to try and achieve in the media what they have not achieved in a court of law.
To date, nine of the suits brought against DTCC and its subsidiaries variously alleging either we 'counterfeit securities certificates,' 'that our Stock Borrow program reaps billions in profits' and that we 'directly contribute to naked short selling,' have been dismissed or withdrawn. These assertions are false."
About DTCC
Through its subsidiaries, DTCC provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities and over-the-counter derivatives. DTCC's depository also provides custody and asset servicing for more than two million securities issues from the United States and 100 other countries and territories. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC has operating facilities in multiple locations in the United States and overseas. For more information on DTCC, visit www.dtcc.com.
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Contact:
DTCC
Stuart Z. Goldstein 212-855-5470
sgoldstein@dtcc.com
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Source: DTCC
AI
