Friday, September 3, 2021

Central Clearing for Securities Lending

DTCC Gambles that If They Build it, they Will Come.

Author: David Schwartz

DTCC has applied to the US Securities and Exchange Commission for permission to launch a securities finance clearing service. DTCC's fixed income arm, the National Securities Clearing Corporation (NSCC), spearheads the central clearing initiative, touting the numerous efficiency benefits to clearing customers, including increased capital efficiency for both borrowers and agent lenders and a reduction in counterparty risk by novating to NSCC the completion of settlement obligations.

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Thursday, October 29, 2015

DTCC Studies the Risks of Interconnectedness

Author: David Schwartz

The financial crisis made clear that interconnectedness and complexity have the potential to magnify localized shocks and amplify and transmit them to the greater financial system.  Understanding the risks posed by our ever more interconnected global financial system is crucial to managing those risks.  To that end, DTCC has published a whitepaper providing an overview of the subject, surveying a selection of interconnectedness studies conducted thus far, and highlighting regulatory measures designed to address interconnectedness risks. Among other things, DTCC concludes that “firms must do more than monitor and mitigate these risks – they also need to focus on building resiliency so they can detect potential systemic shocks before they strike or recover from them as quickly as possible.”

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