DTCC
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The Depository Trust and Clearing Corporation (DTCC) plays a critical role in the clearing and settlement of the securities industry in the United States. Here are a few key points discussed by experts about DTCC:
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Clearing and Settlement: The DTCC is mandated by law to be the clearing and settlement system for all securities transactions in the U.S., acting somewhat like the Federal Reserve for the securities industry. They handle an enormous volume of transactions, settling between two to four quadrillion dollars annually 1.
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Impact on Financial Systems: The DTCC has significant control over market infrastructure and has historically been resistant to rapid change. However, there's potential for blockchain technology to interact with systems like the DTCC to make financial transactions more efficient and secure, possibly leading to tokenized securities on blockchain platforms 2.
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GameStop Incident: During the GameStop trading frenzy, the DTCC played a pivotal role in managing risks through strict margining rules. This helped maintain stability in a volatile market scenario by requiring 100% margin for highly volatile securities like GameStop, thus avoiding systemic risks 3.
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