Director of Risk Management....?
Bagster
that is the most interesting “water” thing I’ve seen!
5:5, Trust and Water all in one place??? That is very, very interesting!
Well, isn’t that an interesting post. The Depository Trust Corp.(DTC) is no secret. All the securities transactions from the NYSE are required to be cleared through them.
NY has a number of advantages intended to keep it as the finance capital of the USA.
Any bank or brokerage firm that buys, sells, or provides safekeeping for securities is well acquainted with DTC.
That address is quite interesting regarding watch the water.
Of course there are Billions/Trillions of securities transactions cleared there, and the Fed is a necessary clearing mechanism for the money flow between the brokerages and the banks.
Say a Bank in the Midwest provides trading and safekeeping options for customers. They will have an account at a Bank in New York for money transfers needed to buy and sell stock. That account is settled through the Fed. That’s the money part for the Banks. Bank sends money for purchases or does a drawdown for sales delivery.
The actual securities part settles through the trust. The DTC cash settlements will go through the NY bank that the Midwest Bank uses.
The DTC checks all the info to insure the trade is accurate. They may DK the sale (Don’t Know) if it doesn’t all check out. Then the bank and brokerage must work to clear up the discrepancy and send it through again.
Companies may use a bank’s safe keeping services to store the actual certificates-these are traditionally located in the vault area of the bank.