HAVE YOU EVER HEARD OF THE DTCC?
IT IS A PRIVATE COMPANY THAT HANDLED OVER $1 QUADRILLION OF 'GOVERNMENT SECURITIES TRANSACTIONS' FOR UNCLE SAM IN ONE YEAR!
Most financial records in the U.S. that are transmitted bank to bank go through a "clearing house". The current favorite clearing house just may be Depository Trust Credit Clearing (DTCC), located at 55 Water Street, New York, NY. Their product is liquidity. Nearly 100% of "legal tender" bank-to-bank transactions 'clear' through this ONE company.
SO, WHAT'S THE BIG DEAL ABOUT THAT?
What does all this mean to you and why SHOULD we concern ourselves with it? Since such an enormous number of checks, stocks, bonds, annuities, insurance transactions, property or other legal tender transactions go through DTCC, ANYONE with privilege to trace a check or such could see who, when and where the payment was deposited or cashed, that's why!
Most people have little cause to know about or care about the DTCC, but most bank to bank checks and so many other financial transactions go through DTCC that it literally boggles the mind. QUADRILLIONS through one company's set of computers! HACKABLE COMPUTERS!
FROM THEIR OWN WEBSITES, THE FOLLOWING INFORMATION:
First watch their cozy little video that gets right down to the meat of the enormity of what they do:
Did you catch all that?
$4 BILLION per day of DTCC repo transactions is mentioned in the first few seconds of the video. This is but a wee peek at what flows through this gargantuan cash machine.
DTCC's depository provides custody and asset servicing for more than 3.6 million securities issues from the United States and 121 other countries and territories, valued at US $36.5 trillion. In 2010, DTCC settled nearly US $1.66 quadrillion in securities transactions.
In business for over 35 years? YES! Since 1976!
For more than 35 years, DTCC's family of companies has helped automate, centralize, standardize and streamline processes that are critical to the safety and soundness of the capital markets.
DTCC's subsidiary, National Securities Clearing Corporation (NSCC), established in 1976, provides clearing, settlement, risk management, central counterparty services and a guarantee of completion for certain transactions for virtually all broker-to-broker trades involving equities, corporate and municipal debt, American depositary receipts, exchange-traded funds, and
unit investment trusts.
NSCC also nets trades and payments among its participants, reducing the value of securities and payments that need to be exchanged by an average of 98% each day. NSCC generally clears and settles trades on a T+3 basis.
Services available include:
Automated Customer Account Transfer Service (ACATS)
Continuous Net Settlement (CNS)
Index Share Processing
Trade Comparison and Reporting
Real-Time Trade Matching (for fixed income securities)
Reconfirmation and Pricing Service
Stock Borrow Program
NSCC is regulated by the U.S. Securities and Exchange Commission (SEC).
They're INTERNATIONAL, trading this info with foreign entities on a daily basis!
DTCC has hundreds of strategic partners - major companies, and smaller-sized and specialized software providers. In addition, DTCC maintains strong working relationships with clearing agencies and securities depositories in dozens of countries worldwide.
One of the first major steps we took soon after DTCC was formed in 1999 was to partner with Thomson Reuters to create Omgeo. No development illustrates our commitment to a global business strategy of forging partnerships more than Omgeo, which plays a critical role in the global securities industry as a central information management and processing hub for broker/dealers, investment managers and custodian banks.
DTCC teamed up with Euroclear and Clearstream to build a new service that automates pre-issuance messaging for new issues of European commercial paper. Euroclear and Clearstream are using this technology to serve their customers. It leverages technology we originally developed for the US commercial paper market.
In 2009, MarkitSERV was created in response to calls from regulators, politicians and market participants for greater cooperation within the industry over electronic trade confirmation to reduce risk in the OTC derivative markets. More than 50 banks, 50 inter-dealer brokers and 1,200 funds are already connected to the service which is expected to handle in excess of 15 million confirmations in its first year.
There is a table that shows their boasts are well-founded... be sure to look for the transactions with the Federal government! It won't "translate" well to this blog page, but it is, for now, available online for you to see for yourselves (which is always best).
Here is the first entry for its dealings with our government:
Government securities transactions processed (FICC)
Value of trades in-net $1.13 quadrillion
Transaction Statistics and Performance
In today's U.S. capital markets, billions of shares of securities change hands every day. Brokers, banks, investment managers, fund managers, exchanges and many others play prominent roles in this daily drama.
And all rely on the behind-the-scenes expertise of the subsidiaries that make up The Depository Trust & Clearing Corporation (DTCC), the world's largest financial post-trade infrastructure organization.
For other eye-opening facts, visit the following pages:
MAYBE NO ONE CARES ABOUT THIS BUT ME, BUT I VALUE MY PRIVACY VERY MUCH! I CAN'T IMAGINE WHY OUR FEDERAL GOVERNMENT DOESN'T MIND THAT MANY TRANSACTIONS BEING FAIR GAME AND EASILY-HAD INFORMATION BY ANYONE WORKING ON THESE TRANSACTIONS, NOR CAN I IMAGINE THE NEED FOR FARMING-OUT THESE TRANSACTIONS WHEN OUR GOVERNMENT LIKELY HAS BETTER CAPABILITY (READ THAT AS BETTER 'MACHINERY') TO HANDLE THESE THINGS THEMSELVES. MAYBE IF THEY WEREN'T SO DAMNABLY BUSY SPYING ON ALL US CITIZENS, THEY COULD WORK ON HANDLING THEIR OWN FINANCIAL TRANSACTIONS INSTEAD OF HANDING THEM OVER TO SOME PRIVATE COMPANY?
I ALSO VERY MUCH WONDER WHAT ELSE WE DON'T KNOW ABOUT WHO ALL, WHAT FOREIGN ENTITIES, CAN SEE INTO AMERICA'S FINANCES, MY FINANCES, AND YOURS!