Organizations such as banks, clearing, depository, market or reference data and message standards have considerable expertise and play a critical role in the post trade through asset servicing lifecycle.
We believe that these organizations are under-utilized and are a potential resource as the US financial community strives for greater efficiencies. In the late 1960’s CCS, a predecessor of DTCC, served the industry by permitting member firms to “outsource” the vault function. Perhaps they can now expand their services to play a larger role in the actual settlement process. Or maybe they can be the catalyst to bring the buy-side into the comparison and clearance trade processes. Including the buy-side into these processes would deliver substantial saving in the industry infrastructure and result in a reduction in risk.
As firms strive to reduce or eliminate expenses, how should they utilize these organizations? What are your thoughts as to expanding the role and focus of these organizations?
November 1, 2007
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