DTCC revenues decline as volumes rise
08 March 2002 | 1073 views | 0
New York's Depository Trust and Clearing Corporation is reporting a slight decline in total revenues for 2001, down to $819 million, as fee reductions offset record volumes of post-trade processing, custody and asset servicing business.
Jill Considine, DTCC chairman and CEO, says that for the year ended december 2001, the depository returned profits of $230 million to customers through fee reductions, discounts and rebates, and in dividends to shareholders.
She boasts: "Our charge of 7 cents per equity transaction for clearance and settlement is the lowest in the world."
Among the key volume highlights for DTCC in 2001:
* National Securities Clearing Corporation (NSCC) cleared and settled 3.5 billion transactions valued at almost $89 trillion in equity and fixed income securities transactions in 2001, up 25%;
* The Depository Trust Company (DTC) held in custody and serviced $23.3 trillion worth of securities. Asset servicing for those securities, including underwritings, reorganizations and payment of dividends totaled more than $4 trillion, also a record.
Omgeo, the post-trade joint venture company established with Thomson ESG, handled 200 million institutional transactions in 2001, from 6000 customers in 40 countries, says the DTCC. The new company combines the institutional trade processing infrastructure of both companies.
On a comparative basis, DTCC reported total revenue at $819 million for 2001, down from revenue of $914 million in the prior year. The decline is attributed to fee reductions that took effect in January 2001. DTCC also discounted or rebated $177 million to customers in 2001, leaving net revenue of $642 million.
Says Considine: "Overall, we had a very successful year, despite the recession that reduced stock values and slowed the growth of trading activity, and we did so despite the four-day trading respite and additional costs related to Sept. 11."