DTCC Processed Nearly $19 Trillion in Securities Transactions the Week of October 29
The Depository Trust & Clearing Corporation (DTCC) today announced that through its subsidiaries it maintained operations and seamlessly processed approximately $19 trillion in securities transactions last week during the events of Superstorm Sandy. During and since this time period, DTCC has remained operational from its multiple out-of region facilities. The company's New York-based employees began working remotely at the onset of the storm, and DTCC's emergency recovery center in Brooklyn was active by Wednesday, October 31.
Robust Business Continuity
“DTCC's robust business continuity strategy includes having a number of facilities operating on a daily basis from different locations, maintaining multiple technology redundancies and a disbursed employee population. This enables us to stay operational even under the most challenging of circumstances, such as Superstorm Sandy and last year's Hurricane Irene,” said Michael Bodson, Chief Executive Officer and President of DTCC. “As a leading provider of critical infrastructure services for the global capital markets, our priority is to ensure that we remain operational through a wide range of scenarios.
“Throughout the week, we were in regular contact with key members of the financial industry, our settlement banks, clients, employees, regulators and local, state and federal emergency management officials to ensure all stayed current on developments impacting DTCC and its clients. We are pleased that we met all critical clearance and settlement deadlines, helping ensure the stability of the US markets despite the significant impact of the storm to the US eastern seaboard and New York City.” DTCC's Settlement Operations Department maintained contact and connectivity with all of Depository Trust Corporation (DTC), National Securities Clearing Corporation (NSCC) and Fixed Income Clearing Corporation (FICC) settling banks, MMI (Money Market Instruments) issuer paying agents and the majority of its participants throughout the week.
DTCC processed approximately $19 trillion in securities transactions last week, despite the impact of Sandy. This compares to a $23.1 trillion weekly average in 2012 year-to-date.
For the week ended Friday, November 2, DTCC's subsidiaries completed the following:
Clearance and Settlement
- NSCC promptly cleared approximately $2.35 trillion in securities transactions for mutual funds, equities, corporate and municipal bonds. This compares to a $3.5 trillion weekly average in 2012.
- FICC cleared $13.45 trillion in Government and Mortgage Backed Securities transactions over the week without incident. This compares to a $17.35 trillion weekly average in 2012.
- DTC processed a total of $1.85 trillion in Money Market activity and other participant to participant deliveries last week. This compares to a $1.95 trillion weekly average in 2012.
- DTC's P&I (principal and income) Cash Processing completed a total of $62 billion in collections and allocations in cash entitlements for dividends, periodic principal, interest, redemption, and maturity payments this week. This included a peak payable date on November 1 where over $40 billion were received and processed. This compares to a $53 billion weekly average in 2012.
- DTC's Reorganization Services cash allocations for the week totaled $7.6 billion. This compares to a $6 billion weekly average in 2012.
- DTC's Underwriting Services processed a total of 823 closings with a total value of approximately $62 billion. This compares to a $57.6 billion weekly average in 2012.
Physical Securities Processing
- DTC resumed its Deposit Services on Thursday, November 1 for clients able to make delivery of physical securities to DTCC's Brooklyn location. Daily physical processing of securities was further expanded on Friday, November 2 by re-establishing critical processing and mechanisms for clients to receive position credit for deposits, reorganization entitlements, and Direct Registration System (DRS) statement withdrawals. All other services related to physical securities processing are expected to follow shortly.
Through its subsidiaries, the company's Mutual Funds Services, Alternative Investment Products Services, Insurance & Retirement Services Deriv/SERV and Global Trade Repository Services, Data Services, Corporate Action Services and Loan/SERV also followed their normal processing schedules for all transactions and applications.
“As previously announced, DTCC's lower Manhattan headquarters, and likely our sealed securities vault, sustained water damage from storm flooding. While it would be premature to make an accurate assessment as to the full impact of the water damage to the vault or its contents, investors who held certificates in the vault as part of the DTCC's book entry system are not at risk of losing the value of their holdings." These physical certificates represent securities held in paper form. DTCC maintains electronic records of the full contents of the vault which can be replicated if the physical certificates are damaged or destroyed. While it may take some time to replace these certificates, we are working as diligently as we can to address this situation in as timely a way as is practicable to minimize disruption to our clients.” said Bodson.
Through multiple operating facilities and data centers around the world, DTCC and its subsidiary companies automate, centralize, and standardize the processing of financial transactions for thousands of institutions worldwide. With 40 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry, simplifying the complexities of clearance, settlement, asset servicing, global data management and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, derivatives, money market instruments, syndicated loans, mutual funds, alternative investment products, and insurance transactions. In 2011, DTCC's subsidiaries processed securities transactions valued at approximately US$1.7 quadrillion. Its depository provides custody and asset servicing for securities issues from 122 countries and territories valued at US$39.5 trillion. DTCC's global OTC derivatives trade repositories record more than US$500 trillion in gross notional value of transactions made worldwide across multiple asset classes.