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From where we stand:Taking A Long-Term View

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From Where We Stand, regulatory compliance, cost reduction and risk mitigation still top the industry’s global agenda. Learn how DTCC’s unique ownership and governance model fosters collaboration and allows us to take a long-term view on issues that are important to the industry.
  • DTCC’s unique ownership structure permits us to serve the best interests of our clients without being distracted by short-term considerations because our clients are also our owners, our interests and objectives align with theirs. 
  • This model enables us to take a long-term view on matters and enables us to bring together a cross-section of the marketplace to collaborate and solve industry-wide challenges together.
  • In the 1990s, we worked with market participants to create the Trade Information Warehouse, which helped address the operational needs of the credit derivatives market.
    • The TIW led to the Global Trade Repository, which has brought unprecedented transparency to the derivatives markets.
    • Today, we are collaborating with clients to transform the TIW using distributed ledger technology.
  • New regulatory mandates and liquidity requirements from Dodd-Frank legislation, European Market Infrastructure Regulation (EMIR) and Basel III will spark a huge surge in demand for collateral and an increase in margin call activity – from as little as US$800 billion to as much as US$10 trillion.
    • As a result, firms are going to have to identify and post significantly more collateral than they have in the past.
  • The same is true of margin call volume, which some industry observers have estimated could jump by much as 500% to 1,000%.
  • DTCC partnered with Euroclear to launch DTCC-Euroclear Global Collateral Ltd  to help solve these challenges.
  • As we look to the future, DTCC will continue to ensure our capabilities remain aligned with industry needs, and we will always bring a collaborative approach to new product development.

In this video, Tim Keady, Head of DTCC Solutions, explains how DTCC’s unique perspective enables us to deliver innovative solutions across the post-trade life cycle to meet today’s market challenges.

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