Waters Rankings 2015: Best Sell-Side Clearing Provider ─ The DTCC
Once a sleepy vestige of capital markets infrastructure, clearing has received its rare share of spotlight in the past few years, thanks to regulatory pressure and operational challenges far greater than any one single financial institution can handle on its own.
![dsc-0886-app dsc-0886-app](/sites/default/files/styles/landscape_750_463/public/import/IMG/439/323439/dsc-0886-app.jpg.webp?h=f5fb2daf&itok=WoG-xGRG)
Cost pressures and diminishing profit margins have seen many tier-one banks exit the business altogether or downsize their clearing activities. And indeed, whereas Goldman Sachs and JPMorgan had won this award in past years, an industry utility—the Depository Trust & Clearing Corporation (DTCC)—has taken the prize for the second year in a row. A quick look at the initiatives the DTCC has delivered on this year explains why, but a theme emerges throughout all of them: that surety of clearing starts with better affinity for data.
To start with, the DTCC focused this year on global data harmonization, recommendations about which it presented to the IOSCO Committee on Payments and Market Infrastructure (CPMI) this June. The top-line priority remains standardization of approximately 30 data reporting fields for credit derivatives, with the goal of a unified trade identifier (UTI) coming to fruition by next year.
Another project that has gone live is Clarient, a new standardized reference data service and entity hub for verifying client information, developed in concert by the DTCC, six major banks, and several global buy-side firms. The hub provides greater standardization and transparency for a range of identification processes demanded by client on-boarding, from traditional KYC checks to Fatca. The DTCC also made news in this space this July, after soaking up the intellectual property and technology assets of the once promising but now-defunct provider Counterparty Link.
Finally, patience has begun to pay off in the push for T+2 settlement, as all four SEC commissioners this summer expressed support for the implementation of the shortened trading cycle by 2017, in the hope of reducing systemic risk and bringing the US in line with other global markets. The DTCC has additionally partnered with Sifma, the Investment Company Institute (ICI) and other industry participants in forming both a working group and steering committee to back the T+2 push, which no longer seems a pipedream.
These three areas all illustrate the crucial role the DTCC now plays in nudging the industry forward, with a long view toward stability. While still a utility at heart, it is fair to say that as clearing and settlement have evolved well beyond their past, the DTCC has evolved as well—into something far more essential.
Cost pressures and diminishing margins have seen many tier-one banks exit the business altogether or downsize their clearing activities. And indeed, whereas Goldman Sachs and JPMorgan had won this award in past years, an industry utility—the Depository Trust & Clearing Corporation (DTCC)—has taken the prize for the second year in a row.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Awards & Rankings
Waters Rankings 2024: Best cloud infrastructure provider—IPC Systems
Product/service: Connexus Cloud
Waters Rankings 2024: Best buy-side order management system (OMS) provider—SS&C Technologies
Product/service: Eze OMS
Waters Rankings 2024: Best reconciliation management provider—Duco
Product/service: Duco platform
Waters Rankings 2024: All the winners and why they won
WatersTechnology readers voted to determine the winners in 35 technology and data categories comprising this year’s virtual Waters Rankings.
Waters Rankings 2024: Best reference data provider—Association of National Numbering Agencies (ANNA)
Product/service: ANNA Service Bureau (ASB)
Waters Rankings 2024: Best corporate actions solution provider—SIX
Product/service: Global Corporate Actions service