The DTCC Timeline
Building a Quadrillion Dollar Business
1973 -- DTC is formed to solve Wall Street’s “paper crisis” that resulted from a massive increase in speculative investments in the stock market. Centralised electronic records replace paper securities.
1974 -- Number of trade obligations requiring financial settlement are greatly reduced by ‘netting’.
1975 -- Only American Depository Receipts that “represent” foreign investments are now DTC-eligible.
1976/7 -- National Securities Clearing Corporation (NSCC) is incorporated. Its first move is to ‘absorb’ the New York Stock Exchange and AMEX.
1979 -- DTC links its computer system directly to every investment (private) bank
1980 -- NSCC begins processing Municipal bond trades
1982 -- The Boston Stock Exchange is taken over. DTC distributes first paperless Book-Entry-Only municipal bond issues, a major step in removing all paper records.
1984 -- More than 1,000 municipalities join the NSCC system. A link is established with the publicity-shy Canadian Depository for Securities as the model for future cross-border clearance and settlement mechanisms
1986 -- The Government Securities Clearing Corporation (GSCC) is formed to facilitate settlement of US government securities. NSCC fully automates its Mutual Fund processing system and world-wide mutual fund promotions take off.
1987 -- DTC takes over the Pacific Stock Exchange.
1988 -- A program is introduced for clearing and settling all ‘cross-border’ trades. DTC can now go global!
1989 -- GSCC introduces an accelerated settlement system for all US Government securities
1990 -- DTC enters the fast-growing market in ‘commercial paper’ and takes on custody of all ‘privately placed foreign securities’ for large US institutional buyers.
1991 -- Payments between mutual funds and their distributors are automated.
1993 -- GSCC celebrates its first daily netting of $1 trillion. Transactions in all municipal and commercial bonds are fully automated. 85% of all new US Treasury debt issues are now processed by GSC.
1995 -- NSCC absorbs Chicago Stock Exchange (Commodity markets and Futures) and moves all operations to New York. With wide promotion ‘Commodity Futures’ become another huge gambling casino.
1997 -- DTC and NSCC take over the Philadelphia Stock Exchange, the last remaining independent. Insurance Services are launched to begin monopolising annuities market and link insurance brokers/dealers and banks.
1998 -- EMCC (Emerging Markets) incorporated to ‘facilitate control of international ‘sovereign debt instruments’.
1999 -- DTCC incorporated to merge DTC and NSCC and insurance industry is “revved-up” by full automation
2000 -- GSCC links cash markets and futures markets for US Treasury Securities, through privately controlled New York Clearing Corporation
2001 -- DTCC partners with Thomson Financial to create Omgeo a “global joint venture” with 6,000 customers world-wide - and converts to decimal pricing to prepare for future EU and APEC mergers and acquisitions.
2002 -- DTCC absorbs GSCC, MBSC and EMCC. Omgeo launches first centralised cross-border service for institutional securities world-wide.
2003 -- DTCC re-engineers the sale and processing of Life Insurance policies and annuities, launching a world-wide marketing campaign by insurance companies and their agencies, modelled on the success of mutual fund and derivatives markets in the mid-80s.
2004 -- DTCC turnover surpasses one quadrillion dollars and their Annual Report defines a quintillion, sextillion and septillion, presumably in anticipation of new ‘goals’.
2008 -- DTCC achieves a record $1.88 quadrillion – that’s $1,880,000,000,000,000.00 and its goal of becoming “the institution of choice (?) world-wide” for the clearing, settling and electronic storage of all financial and investment instruments. It creates a transatlantic ‘merger’ by acquiring ownership of Euroclear, its EU counter-part – adding another quadrillion dollars to its transaction turnover – and establishes ‘associate’ offices as far afield as Australia and Kyrgyzstan, as remote as Bishkek, as impoverished as Zimbabwe and as small as the island of Malta, …and it all channels through DTCC New York without ever drawing the attention of the IRS, Congress, academia or the world’s media.
2012 -- Hopefully, the unmistakable signs of a global economic collapse create a groundswell of public outrage at the cruel austerity measures inflicted on 'the 99%', while bankers walk off with billion-dollar bonuses. Beginning in Canada, No-Exclusion Financial Transaction Tax legislation is passed, requiring banks to collect and remit to the nation’s treasury 0.1% of every financial transaction. By stages all other taxes are revoked, beginning with a 30% cut in personal income tax. Starting at the municipal level interest-free Constitutional money, issued by our publicly-owned Bank of Canada via provincial treasuries, incrementally and judiciously replaces our private debt-money system, stimulating local economies and empowering communities to achieve their full potential.