DTCC/CDS explore collaboration; rule out merger
15 July 2003 | 5600 views | 0
The Depository Trust & Clearing Corporation (DTCC) in the US and The Canadian Depository for Securities Limited (CDS) are to undertake a feasibility study exploring opportunities for cross-border collaboration.
The study, to be completed over the next four to six months, will focus on areas such as risk management, transaction services, information-based services, technology platforms and business continuity planning.
The two clearing entitities stress that the co-operation is not a precursor to a merger or an acquisition.
"We do believe, however, that taking a fresh look at partnering our shared experience and expertise can gain advantages for both companies," say the depositories in a statement.
CDS is the only clearing and settlement organisation with a full cross-border link into the US, encompassing central counterparty clearing and delivery-versus-payment settlement and asset servicing.
The feasibility study will determine if there is a sufficient business case to support further collaboration, including shared services and knowledge transfer.