21 March 2018
visit www.ebaday.com

DTCC completes settlement system consolidation

14 January 2004  |  4999 views  |  0 DTCC completes settlement system consolidation

The Depository Trust & Clearing Corporation (DTCC) has completed the consolidation of the settlement systems of The Depository Trust Company (DTC) and National Securities Clearing Corporation (NSCC).

The two platforms provides clearance and settlement services for virtually all trades done on the New York Stock Exchange, Nasdaq, the American Stock Exchange as well as on all regional exchanges and electronic communications networks (ECNs) in the United States, amounting to more than $1.4 trillion each day.

The unified platform eliminates work for both banks and brokers, says the DTCC, since they have only one settlement system to support and one end-of-day settlement process to complete. Prior to consolidated settlement, customers accessed DTC and NSCC settlement systems separately, using different functions and screens to view their settlement obligations with each organisation. A single set of functions on the new system now enables users to view settlement information for both DTC and NSCC on the same screen and provides them with one end-of-day netted settlement obligation.

John Abel, director, DTCC product marketing and development says the introduction of the new system will result in a reduction of overhead costs.

"The consolidated system will end the settlement issue of wiring separate funds to satisfy separate obligations, which occurred when customers were dealing with two settlement platforms," he says.

This means that settling banks (banks that handle transferring money to and from DTC and NSCC on behalf of customers) need only make one payment – not two as they previously did – to settle both obligations.

The number of reports also will be reduced, says Abel. Instead of receiving several different settlement-related reports, customers will receive a new, consolidated DTC/NSCC Participant Settlement Super Statement. Settling banks will have the option of receiving a new, consolidated computer-to-computer facility (CCF) file.

DTCC has been running the unified system in parallel tests alongside the existing platforms since June 2003.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

DTCC introduces automated payments reconciliation service

DTCC introduces automated payments reconciliation service

09 January 2004  |  6016 views  |  0 comments
DTCC launches credit default swaps confirmation service

DTCC launches credit default swaps confirmation service

24 November 2003  |  7134 views  |  0 comments
G30 calls for EU clearing and settlement reform

G30 calls for EU clearing and settlement reform

23 January 2003  |  4180 views  |  0 comments

Related company news


Related blogs

Create a blog about this story (membership required)
Visit www.nextgenbanking.co.ukVisit www.facebook.com/business/

Top topics

Most viewed Most shared
hands typing furiouslyBitcoin at 50,000 USD?
12467 views 0 | 5 tweets | 4 linkedin
Can banks be a threat to Big Tech?Can banks be a threat to Big Tech?
10487 views comments | 29 tweets | 39 linkedin
Indian fintech sector needs regulatory support to flourishIndian fintech sector needs regulatory sup...
10059 views comments | 10 tweets | 8 linkedin
BBVA tests 'invisible payments' technology at inhouse cafeBBVA tests 'invisible payments' technology...
9516 views comments | 13 tweets | 31 linkedin
RBS hatches plan to create digital challenger bankRBS hatches plan to create digital challen...
9329 views comments | 12 tweets | 22 linkedin

Featured job

Competitive base + commission
London, UK

Find your next job