Congratulation to Depository Trust Clearing Corporation (DTCC) for winning the 2011 Governor’s Sterling Award.  It was a pleasure and honor to work with you towards your journey to excellence.  To learn more about DTCC, please visit their web site at:


At its core, The Depository Trust & Clearing Corporation (DTCC) is a data processing business, involving the safe transfer of securities ownership and settlement of trillions of dollars in trade obligations, under tight deadlines every day. At the center of the financial services industry, DTCC takes over after a trade has been executed to make sure that sellers receive their money and buyers receive their securities and also provides the book keeping services for holders of record. DTCC was established in 1999 as a market-neutral, member-owned and governed holding company by combining The Depository Trust Company (DTC) and National Securities Clearing Corporation (NSCC). Those companies grew out of Wall Street’s paperwork crisis in the late 1960s and early 1970s, where they were formed initially to clear and settle trades for the New York Stock Exchange, American Stock Exchange and, later on, Nasdaq. Clearing and settlement in the U.S. was highly fragmented at that time. Regional markets, such as those in Boston, Philadelphia and Chicago, each maintained separate clearing and depository businesses.

Today DTCC includes FICC which clears and settles U.S. treasury securities, non-mortgaged backed federal agency securities, and mortgage backed federal agency securities. As trading volumes grew, customers became concerned about risks, the high costs, inefficiencies, redundant systems, and disparate processes as well as the need to post collateral at each of the clearing companies. At the same time, U.S. regulators sought to encourage the creation of a unified national market mechanism.

Over time, U.S. market participants came to realize that there were considerable cost efficiencies and risk-reduction advantages to be gained by commoditizing back-office financial functions, while continuing to compete on the front end of the market. They began to see the advantages of a centralized infrastructure model that could achieve economies of scale from critical mass. They also saw the value of centralized trade netting to reduce cost and risk. Eventually, customers began to direct their business to a single clearing and single depository organization – a process that took a number of years to complete.

Today, DTCC as an industry owned organization, clears and settles all eligible securities issues.  DTCC’s corporate headquarters is located in New York City and DTCC has multiple offices strategically located in the United States, Europe and Asia. DTCC comprises 13 subsidiaries and joint venture companies. DTCC’s Southern Business Center (SBC) is located in Tampa, Florida.

David Harrawood, President
Baldrige Group, LLC

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