Protecting Our Members The Lehman Bankruptcy Thomas Quaranta, senior relatiollSiJip mal/agel; ReiarioliShip Mallagemellt, alld Elena Staloff, vice presidem, Cleal'flllce alld Settieme!ltlEquities
Tuesday, September 9 1,'/l/lIdll I1mri",;:" / 11(, I'/,l("ri Oil
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12 I DT CC 2008 The Leilrn;ul ilankr uprcy
Lehman Bankruptcy Time/ine
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John Petrofsky, associaTe COl/wei. Gel/em! COl/llse/'s Office
he firsr rime OTCC dealr
wirh rhe possible bankruprcy of a majo r firm like Lehman Brorhers, ir " )) was a ga me - a war game.
Ir was, in fact, a risk-management exercise DTCC went rhrough in
June 2008. T he idea was to give execurives and staff a real-rime scenario
o f whar they mi ghr face if o ne of Wa ll Srree r's la rges r in vesrm ent
banks - and one ofOTCC's largest customers - suddenly went belly up.
T he next time OTCC dealt with the bankruptcy of Lehman
Bro thers, three mo nths later, it was profoundly real - and the beginning
of a quick-moving crisis.
Lehman was one of the nation's most powerful fin ancial insti tutions
and among rhe world's five largest participants in rhe trillion-doll ar
markers fo r governm ent and mortgage-backed securiti es . Yet Lehman
Brothers Holdings, Inc. slid in to bankruptcy abruptly on M o nd ay,
Sepr. 15,2008, followed about a week later by the bankruptcy of its U.S.
brokerage subsidiary.
Sunday, September 1 4 IdIA', j(il' IdA-ml'I'1 o/I,.hlf/dll Ilm/i-' (1(111'11 (III ,~lIlIr/'/r I) I( ( . IS ,1111,1.,('(1 ,\lIw/'r), ("{'I"/IIII:~ /hril 1/1/ II rl'llljlkjlirlltiIiATII/,/q;
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Julie Krill, directOJ; ClearfiNce flild Settlement/Equities, find
Michael C, Bodson , executive mflnflging director;
Business Mflnflgement find Stmtegy
Irs collapse, the largest in U.S. history, lerr DTCC with a staggering
challenge: how to wind down the more than $500 billion in securities
trades rhat remained on the books of Lehman. One newspaper called it
"The Nightmare on Wall So·eer. "
'Nightmare' Scenario For DTCC and its subsidiaries, a nightmare was all too possible. After
all , as central counterparties, they had guaranteed completion of billions
of dollars worth of Lehman's trades. If rhey incurred substantial losses
when winding trades down, rhey would need to starr drawing on
clearing funds their customer-members maintain with them in case of
def.lults. Never in its 35-year histo ry had DTCC been fo rced to do this.
So What Happened? OTCC had begun stepping up its daily risk monitoring of Lehman's
trading acri vity some weeks earlier. Execurives from D TCC's risk
managemem and legal teams were also meeting with regularors during
this period, To prevem any exposure OTCC's deposirory, The Oeposirory
Trust Company (OTC) , might have ro a Lehman bankruptcy, OTC
sharply resrricred any debit Lehman Brothers, Inc. could incur at the
deposirory,
The Pre-Dawn Wait OTCC execurives had already gathered in their offices before dawn on
Monday, September 15, They knew an announcemenr was imminenr,
Lehman Brothers Holdings, Inc. was abour ro shock the world by
declaring bankruptcy, although the Lehman subsidiaries that were
members of OTCC were not covered by that declaration, When the
news hit, the markets wenr inro a near free falL Trading volume on U,S,
markets climbed ro a recotd that day, and then proceeded ro set more
records as the week wore on,
The next day, the bankruptcy court appoinred the SeCLlrities
Investor Protecrion Corporation (SIPC) trustee for Lehman Brothers,
Inc. OTCC's clearing subsidiaries had been accepting as many Lehman
trades as possible ro allow member-CLlsromers the opportunity ro take
advamage of their guaranrees ro see the trades through ro completion,
Over the weekend, Lehman agreed with OTCC's subsidiaries ro
conducr an orderly wind-down of any outstanding positions, and on
September 22, OTCC's subsidiaries advised their cusromers that they
would no longer accept any new Lehman trades,
Meanwhile, the British bank, Barclays, proposed ro spend $1.75
billion ro purchase certain assets of Lehman Brothers Holdings, Inc. 's
business, including, possibly, its brokerage arm, OTCC acted ro srop
transfers via ACATS, its auromated cusromer accounr transfer service,
ro avoid a severe liquidity demand at Lehman that could have reSLllted
in a default. That would have caused significanr legal issues before the
sale of assets ro Barclays could have been completed,
Heng Sun, directOl; Quantitative Risk, Risk Management, and Elke Jakubowski,
vice president, Clearance rind Settlement/Fixed Income
14 I DTCC 2008 I The LehlllJn Bankruptcv
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O ver the long, hectic weekend of September 19-21 , Barclays' teams met
with OTCC executives ro review the Lehman assets OTCC was holding
in its deposirory and as collateral for trading positions, Finally, sometime
around 2 a,m, Monday, September 22, the bankruptcy judge overseeing
the Lehman case signed off on Barclays' asset purchase plan, And later
Monday morning, OTCC senr our formal notices ro cusromers that said
Lehman would begin an orderly wind-down of outstanding trades still on
the books at the clearing corporations, By September 24, that changed
ro a formal "cease ro act" order, and OTCC's subsidiaries rook over
responsibility for liquidating the positions,
But there would be more late-night meetings in the coming weeks,
especially for OTCC's O eriv/SERV unit, It would have ro help guide
the industry through several major credit evenrs in the global credit
default swap (CDS) market while simultaneously coping with media
reportS and market anxiety about the size of credit default swap payouts
due on Lehman conrracts,
Timothy Beckwith (left:),
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Catching a Break That Monday, however, DTCC caught a break. Its Fixed Income
Clearing Corporation (FlCC) already had plans to launch a new central
counterparty (CCP) that could net and guarantee trades in the
mortgage-backed securities market. Now execurives at a major securities
industry trade group, the Securities Industry and Financial Markets
Association, were on the phone exploring whether it would be possible
to kickstart the CCP right away in order to wind down Lehman's
forward mortgage-backed securities trades. "We were looking at
$329 billion in mortgage trades that had to be dealt with," said Murray
Pozmanter, DTCC managing director, Clearance and Settlement
Group. "Frankly, we were ready to look at anything that could work."
An hour later, Pozmanter and others listened to some 300 bro
ker/dealers on a conference call. Rather than follow its standard trade
by-trade wind-down procedure, the brokers asked if FlCC could try to
net out as many of the trades as possible through a central
counterparry approach,
The lights burned through the night in an all-hands-on-deck
exercise as more and more numbers were entered into spreadsheets. And
by the next day, some $300 billion in Lehman forward mortgage-
backed securities trades - or about 90% of the value outstanding - were
netted out. The securities industry heaved a collective sigh of relief.
Yet Lehman's book held close to $200 billion in other trades as
well - all of them guaranteed by DTCC companies, The trades
included $190 billion in government securities and repos, and another
$5.85 billion involving equities, municipal bonds and corporate debt.
National Securities Clearing Corporation (NSCC), which clears
and settles virtually all broker-to-broker trades in the U.S. in equiti es,
corporate bonds and municipal bonds, faced total exposure of
approximately $5,85 billion from Lehman Brothers at the time its
accollnts were closed, This sum included $3.8 billion in options
exe rcises and assignments from the Options Clearing Corporation,
which expired on Friday, September 19, and NSCC processed and
subsequently guaranteed. A portion of Lehman's obligations at NSCC
was also successfully resolved when DTCC's DTC subsidiary took the
lead in working with Lehman's pledgee bank to arrange for the release
of $1 ,9 billion in securities, which were used to satisfy open trades at
NSCC. As a result, NSCC did not need ro go ro the marketplace to
purchase securities fot these trades.
DTCC completed the largest close-out in
history - $500 billion - without any loss to our customers j clearing fund.
The Lehlll an Ban kruptcy I DTCC 2008 115
Liquidating Lehman's Portfolio At this point, OTCC hired an inves tmenr manager ro help in li quidating
positions held by OTCCs equity and fi xed income clearing corporations.
Neither the investment manager's identi ty no r OTCCs was disclosed so
they could operate in the markets with anonymi ty. The in ves tment
manager provided advice and helped determine the best strategy ro
hedge the porrfolios, minimize risk and conduct an orderly liquidat ion
without disrupting the markets.
By T hursday, September 24, the team was already beginning ro
hedge the outstanding trades. T he next day, OTC C locked down
Lehman's fi xed-income porrfolio and on Sa turday was able ro lock down
the po rtfo lio with equities and co rporate bonds. The rest of the wind
down now began in earnest.
Mitigating Risk Overseas EuroCCP, a U. K. -based subsidia ry of OTCC that p rov ides
pan-European clearing and settlement services for multilateral trading
fac ilities, was in midstream of its initial business launch when it WJS
call ed o n ro close out tradin g pos itio ns fo r Lehman Bro thers
International (Europe) (LBIE). LBIE was placed inro administrati on o n
September 15, but EmoCC P continued ro settle as many of the open
pos itions as possible with LBI E's agent banks so it could deliver the
securities to other participants the SJ me day. LBT E had open trades in
12 markets and six currencies, rotaling almost €2 1 million. The nex t
day, EuroCCP ceased ro act for LBIE once it became clear that LBIE's
agent banks would no longe r be settling the remaining pos itions.
EuroCCP engaged a broker ro close out € 16 million in remaining
pos it ions. EuroCC P successfully completed its close-out of LBIE's open
pos itio ns without the need ro use EuroCCP's G uarantee Fund.
Rumor Mill on CDS Trades Continues to Spook Financial Markets Mea nwhil e, as uncerrainty and turmoil continued ro swirl through the
markets, OTCC acted ro minimize risk for its OTC deri vati ves
cusromers. It acted as early as September 15 ro srop the auro mated
central settlemenr of C OS payment obligations maintained in OTCCs
Trade Information Wa rehouse involving two Lehman subsidiaries,
LBI E and Lehman Brothers Special Financing, Inc. OTCC also ass isted
counterparri es in li sting and removing from the Warehouse more
than 300,000 C DS contracts that market parri cipants held with
Lehman. H owever, market anxiety continued ro grow, drive n in part
by speculation th at the C D S market had exposure of as much as
$400 b illio n fo r payments on a Lehman default.
Calming Public Fears Later that week, after discuss io ns with cusromers and the Federal
Rese rve Bank of New York, which was looking for ways ro help calm the
markets, O T CC disclosed publicly for the first time figures fro m its
Trade Inform ation Wa rehouse. OTCCs press release communicated
that the real size of obliga tions in the C DS market was closer ro
$6 billion, fa r less than many had speculated . Less than two weeks later,
OTCC was able ro provide instructions for the transfer - without
incidenr - of about $5.2 billio n in net funds amo ng the various
counterparries involved in the Lehman "credit event. "
At the same time, OTCCs O perations team was scrambling to
keep up with Federal Reserve initiatives ro unfreeze the commercial
paper market and obtain timely payments from key paying agents.
By O crober 13, OTCC was able ro liquidate the las t of Lehman's
mortgage-backed securities trades. It rook another week ro complete
liquidating the huge book of U.S. government securities trades
Lehman's collapse had left behind. And finally, at the end of Ocrober,
six weeks after the bankruptcy, the investment manager closed out the
las t of the equi ty and co rporate bond trades.
O utside of people in the fin ance wo rld and at the Federal Reserve,
few knew that OTCC had completed the largest close-out in the
hisro ry of U.S . financial markets. And it did so without touching any
lines of credit held by its subsidiaries - or any of the clearing funds
all customer-members are required to put up.
T he nightmare had been vanquished. 0
Wed nesday, September 24 j) f( C/,II(;/i.,jll·'> i/Olili"'{liolllli il.> IIIC1iII,,';~' dl .\'\(( • II( .(. ,ifill /) /( . 1/1.11 il I'd., (I',f"r/III d(1 (0"
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(Above) Kesavan Me non, mflllflgel; IIser flcceptflllce testing. Deriv/SER\/
(Left) Drew Saur, systems directOl; App/im/iolls DelJe/opmm/ fllld /V/tlilltl'l/flllct' (ADA1). II/formtltion Technology
Thursday, September 25 I) TeJ,'loc/'" //'1' FI( '(' /,orl/i,lio,j:1l I eI'lllllll
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(Above, Left to right) Jeanne Potter, directOi; Finance; Marie Rey, managing director, (i'cclit and Mar/;?et Risk Management; Alan Bendel , application dCIJelopel; DeriviSERV tlild Albert Gambale, rl/al/agillg directOi; ADM Clearing and Risk
(Left) Maryana Smaga, control IInit lead, Deriv/SERV Opemtions
T he [,eh1111111 l) Ilnk rUplcv I DTCC 2008 I 17
Customer rating in
2008 from a customer
satisfaction survey,
conducted by an
independent research firm.
TIle Trade Irlforrnatioll Warell0llse Safely Navigates CDS Market rrilrougil StorlllV Waters
••• anagmg
one major bankruptcy and its impact on the credit default swap (CDS)
market would not necessarily cause alarm in the global financial system.
However, the reality of tackling eight credit events nearly simultaneously
this past fall worried market observers," said Peter Axilrod, managing
director, business development, DTCC. Against this backdrop,
market participants relied on DTCC's Trade Information Warehouse
(Warehouse) to help them navigate the stormy waters churned by a grow
ing list of troubled financial institutions including Fannie Mae, Freddie
Mac, Lehman Brothers, Washington Mutual, Tembec Industries Inc., a
Canadian forest products company, and three Icelandic banks.
The Warehouse's robust infrastructure minimized the risk associated
with the turmoil in the financial markets. "Had the Warehouse's central
settlement capability and automated credit event processing service not
already been in place when these credit events took place, the burden of
calculating and managing the payouts on affected contracts would have
severely stressed participants in the OTC credit derivatives market," said
Axilrod.
DTCC's Warehouse eased the finance industry's concerns, providing
the only comprehensive global registry and automated processing infra
structure for CDS transactions. "Because the Warehouse's central
settlement function nets payment obligations among counterparties
of a CDS contract, the total exposure of $285 billion in gross notional
value the market experienced from the eight credit events was signifi
cantly reduced to a fraction of that amount, to approximately $12 bil
lion in funds transfers from net sellers to net buyers of protection for
the CDS contracts written on the eight companies," said Frank De
Maria, managing director and chief operating officer, DTCC
Deriv/SERY.
As word spread on the actual size of the settlements, fears that the
ongoing string of credit events might destabilize the finances of those
firms trading in CDS instruments began to ebb.
Maintaining OTC Derivatives Contracts Throughout Their Life Cycle DTCC Deriv/SERV LLC, a wholly-owned subsidiary of DTCC,
launched the Warehouse in late 2006 in collaboration with market
participants. The aim was to address the industry's need to centralize
the maintenance and automated processing of OTC derivatives
contracts throughout their multi-year life cycle. At the end of 2008, the
Warehouse's global registry held a total of approximately 2.2 million
CDS contracts - which represents the vast majority of outstanding
contracts - with an aggregate gross notional value of approximately
$29.2 trillion.
DTCC enhanced the Warehouse's functionality in November 2007
by adding a central settlement solution for calculating, netting and issu
ing payments between counterparties to bilateral CDS contracts. Central
settlement reduces the operating risks associated with the manual steps
that were traditionally used to process these payments. In 200S, the
Warehouse reduced 3.S2 million gross quarterly coupon payments valued
at US$169 billion gross to 2,200 net payments valued at US$9.S billion.
DTCC's central settlement service is provided in collaboration with CLS
Bank International.
Ensuring an Orderly Transfer In addition to its ability to process multiple credit events, the
Warehouse proved the value of its central registry when it took charge
of moving Bear Stearns' CDS deal book of open CDS contracts,
encompassing hundreds of thousands of trades, to JPMorgan Chase last
summer. Without the Warehouse's automated processing capability, the
transfer may have taken months. Instead, working with teams at many
of the affected counterparty firms, a staff of Deriv/SERV professionals
completed the majority of the swing over a 48-hour period during a
weekend in mid-July.
The 'Irade Warehouse I DTCC 2008 I 19
DTCC accomplished this by leveraging records already maintained
111 the Warehouse to streamline an otherwise lengthy confirmation
process required with the numerous counterparties affected by the transfer.
Because market participants were able to manage these novations, or
contract assignments, in synchronous bulk fashion, the process was
controlled and ownership of the transactions involved remained cer
tain. This exercise has since proved to be a preview of similar initiatives
as the financial services industry goes through further consolidation.
Largest Community of Users In addition to the CDS contracts, Deriv/SERV also provides automated
matching and confirmation for a wide range ofOTC credit, equity and
interest rate derivatives. Deriv/SERV's customer base is the largest of
any post-trade processing service provider in the industry and includes
all major dealers and more than 1,200 buy-side firms in 35 countries.
In 2008, DTCC Deriv/SERV processed nearly 10.1 million OTC
derivatives transactions through its matching and confirmation service,
up 71 % from the 5.9 million transactions processed in 2007. Average
daily transaction volume in 2008 was approximately 39,000, up about
71 % from 23,000 in 2007. Market participants indicated in their
October 31 report to regulators on their progress to strengthen the
infrastructure for the OTC derivatives market that more than 95% of
CDS contracts are electronically processed through Deriv/SERV's
automated processing platform.
Creating an OTC Derivatives Processing Powerhouse In July, DTCC and Markit announced plans to form a new company that
would combine DTCC Deriv/SERV's trade matching and confirmation
service with Markit's confirmation and up-front work-flow processing
services for OTC derivatives, including Markitwire and Markit Trade
Manager. The new OTC derivatives processing powerhouse will deliver
increased operational efficiency and certainty to the market by providing
a unified gateway for confirming OTC derivative transactions globally
across all asset classes. The strategic partnership also responds to customer
demand for a more secure, reliable and streamlined operational
environment. While Deriv/SERV's matching and confirmation engine
will become a part of the new company, the Warehouse will remain
part of DTCC.
Gearing Up for 2009 "As the market turbulence of 2008 spills into 2009, the Warehouse
continues its critical role in bringing greater transparency, efficiency and
certainty to the OTC derivatives market. DTCC is already gearing up
to manage processing the 12 credit events and bankruptcies that have
been declared since the beginning of the year," said Axilrod.
In addition, as global regulators and OTC derivatives market
participams worldwide focus on establishing a central counterparty
(CCP) for CDS transactions, DTCC is already collaborating with all
proposed CCP solutions to facilitate links to the data managed in the
Warehouse's global registry as they move towards providing the trade
guarantee services now being called for in the market. D
The Trade Information Warehouse, a
global registry for CDS transactions,
minimized risk associated
with eight major credit events.
20 DTCC 2008 I The Trade Warehouse
DrI'CC Is Expanding Global Services
Deri,/SEHV CII~tolller~ (number [It year end)
1.078
04 05 06 07 08
22 I DTC:C: 200S Global Services
Dt'ri,,/SEHV TraJl~at'lioll~ pl"(H'l'~~l'd
(in thousands) 1 fUJ72
),876
2,6.l l
2,) 1 \)44
04 05 06 07 08
Tota l Volume
s markets expand, cusro mers
wanr a broader range of in vestmenr servicing solutions that can reach
beyond geographical borders , yet are still refl ective of local markets -
operated at-cost and owned, guided , developed and governed by the
firms th at are its primary users. At OTCC. 2008 saw the launch of new
services ro meet their needs.
The global syndicated loan market exceeded US$2. 1 trillion through
the third quarrer of 2008, even as deal volumes slowed after yea rs of
double-digit growth. To conri nue ro grow this market and boost
effi ciencies for cusromers, OTCC created two new services ro help
auromate and streamline syndicated commercial loan processing.
"Today, loan processes are essentially manual, with information
faxed between market participanrs," said C hris Childs, DTCC vice
presidenr, G lobal Loans Product Management. "In the same mann er as
we did with Oeri v/SERV in the OTC deri vatives market, we want the
new Loa n/SERV products ro deli ver a broad range of auromated and
va lue-added services that will work in Europe, North and Latin
Ameri ca, Asia and o ther markets."
Syndi cated loans are co mplicated structures involving multiple
lend ers for each borrower, with an agent bank act ing as the liaiso n,
transmitting information back and forth among pa rti es . The
Loa n/SERV Reco nciliation Service, launched in 2008, enables agent
banks and lenders ro view and reconcile their loan positions dail y. T he
co mplementary Loan/SE RV Messaging Service, piloted in late 2008,
prov id es a sa re, secure, auromated netwo rk for the transmission, receipt
and online sto rage of industry sta ndard loan messages.
With the success of th e OTCC Oeri v/SERV platform providing a
secure, reliable and strea mlined operational environment for matching
and confirmation for a wide range of OTC deri va tives products, OTCC
looked in 2008 to collaborate with another industry leader ro expand
th e reach of this market. Expected ro launch in 2009, this new
co mbined co mpany will lin k th e front- and middle-office trade processing
se rvi ces o f Markit, a U.K.-based fi nancial information services
company, with Ocriv/SERV's back-offi ce post-trade confirmatio n and
matching se rvi ces . This coll aborat ion wi ll all ow buys ide and sel l-side
G lobal Services I OTCC 200R I 23
OTC derivari ve marker parrici panrs ro confirm rrades, while ar the same
rime, gain access rhrough a common portal to addirional services
provided by rhe parenr companies.
In May 2008, DTCC received approval from rhe U.S. Securiri es and
Exchange Commi ss ion (SEC) ro launch rhe new Alrernarive
r nvesrmenr Producr (AlP) suire of services. AlP links global marker
participanrs, including broker/dealers, cusrodians, alrernarive fund
managers and hedge fund administrarors. The service provides end-ro
end process ing of in vesro r-Ievel transacrions for alrernarive in vestmenrs,
such as hedge funds, funds of fund s, privare equity, real esrare
investmenr trusrs and limired partnerships.
Processing alrernari ve invesrmenrs is currently handled manually,
using hard-copy documenrs, fax, email , phone calls and spreadsheers.
AI P inrroduces a srandardized communica rion s formar and an
auromated cenrral infras rructure inro rhe alrernatives market.
"AlP effect ively addresses many of the costly and risk- prone aspecrs
of processing rh ese securiries," said Ann Bergin, managing direcro r,
DTCC Wealrh Managemenr Services. "In much the same way thar
Fund/SERV"~ sysrem revolutionized how mutual fund orders were
processed and settled more than 20 yea rs ago, we believe AlP will
similarly transfo rm the global alternarive and direct invesrm enr
indusrry." By year-end, rhe firsr two charrer clienrs, BNY Mellon
Shareowner Services and Pershing LLC a subsidiary of The Bank of
New York Mellon Corporarion, went live.
DTCC also received permission from the SEC in 2008 ro ad mir non
U.S. fin ancial companies as full members ro NSCC and DTC. In December, the company fil ed ro bring non-U.S. firms inro both rhe
morrgage-backed and government securities di visions of FlCC as full
members , and has since fil ed ro expand membership opportuniries for
buys ide firm s, including mutual funds and hedge fund s. Alrhough
many non-U.S. fin ancial firm s are major participants in rhe various
U.S. securiries markers, previously only firm s wirh U.S. branches or
agencies were eligible for direcr mem bership in DTCCs subsidiaries.
Permining non-U.S. financial companies ro clear and ser tle rheir
rrades direcrly in U.S. markets leaves those firm s ben er positioned ro
take advantage of the risk management, balance-sheet netting and cosr
savings rhat direcr membership provides.
"S ince rhe bankruprcy of Lehman Brorhers, hedge funds and orher
buyside firms have been looking more closely ar how rhey can mitigate risk
rhrough DTCCs va rious cenrral counrerparries" said Michael Bodson,
DTCC executive managing direcror, Business Managemenr and Srraregy.
DTCC is one of the few organizations in rhe world rhat offers broad,
global coverage of corporare acrions. With operations in New York,
London and Shanghai, rhe Global Corporate Action (GCA) Validarion
Se rvice "follows rhe sun ," providing 'round-rhe-clock coverage.
The GCA Validarion Service - one of OTCC's mosr highly rated
producrs and services, wirh 92% overall sarisfacrion among cusromers -
24 I DTCC 2008 I Global Se rvices
currently tracks more than 2 million securities in 160 countries, in 16
languages, providing informarion on corporare acrions announcements.
In 2008, th e service provided more rhan 1 million corporare acrion
announcements and more than 3 million announcements of scheduled
payments on fi xed income instruments. T his yea r, enhancements ro the
service included es tablishing new intraday feeds abour corporare acrions
fi'om OTC, as well as suppl ementing the ex ist ing secondary sources of
data wirh informarion from some 18 newswires from around the world.
DTCC co nrinued ro wo rk this year wirh formal standards bodies and
industry associations ro promore industry standards. OTCC collaborated
wirh SWIFT on global message srandards and rhe new AlP service suire
will soon accept ISO 20022-compliant, XML formats. OTCC has
also adopted FpM L';J (Financial producrs Markup Language) in the new
Loan/SE RV Messaging Service.
Ouring 2008, OTCC worked closely wirh Japanese and Brazilian
coll eagues on organizing a "CCP 12" summit in Tok),o, where 30 cenrral
counterparries from around rhe wo rld compared notes on global issues.
OTCC also srrengrhened relations with global counrerparrs who are
members of the Americas' Central Securities Oeposirory Associarion
(ACSOA) and where Mary Ann Callahan, managing direcror, OTCC
Global Relarions and Oevelopmenr, was re-e1ected president of ACSDA
ea rly in 2009. Lasrly, OTCC hosred irs firsr G lobal Relations Exchange
and Training (GREAT) workshop, fosrering cross-border collaboration
on key trends shaping operarions practices in roday's capital markets. 0