Depository Trust and Clearing Corporation (DTCC)

Definition

The Depository Trust & Clearing Corporation (DTCC) is a central clearinghouse and securities depository that plays a key role in the financial markets infrastructure of the United States.

What is the Depository Trust and Clearing Corporation?

DTCC serves as a trusted provider of post-trade infrastructure, risk management, and securities processing services for the global financial industry. DTCC provides clearing and settlement services for a wide range of financial transactions. As a central counterparty, DTCC ensures the efficient and timely settlement of trades, reducing counterparty risk and systemic risk in the financial system.

DTCC operates the Depository Trust Company (DTC), which serves as the central securities depository for the majority of securities traded in the United States. DTC provides custody and book-entry services for securities, allowing for electronic transfer and settlement of securities transactions.

Furthermore, DTCC plays a key role in risk management within the financial markets. Through its comprehensive risk management frameworks and systems, DTCC monitors and manages counterparty credit risk, market risk, and liquidity risk associated with securities transactions and derivatives contracts. 

While DTCC is based in the United States, it operates globally and provides services to financial institutions and market participants around the world. DTCC’s international subsidiaries and partnerships extend its reach and enable it to offer clearing, settlement, and risk management solutions in global markets.