NEW YORK--()--The Depository Trust & Clearing Corporation (DTCC) announced today the first non-domestic members of the Government Securities Division (GSD). Mitsubishi UFJ Trust and Banking Corporation and The Bank of Tokyo-Mitsubishi, UFJ, Ltd, are now active GSD members, reflecting DTCC’s growth and expansion in the global marketplace. GSD is a division of the Fixed Income Clearing Corporation (FICC), a subsidiary of DTCC.
“As DTCC continues to extend its worldwide footprint, we remain committed to strengthening our ability to manage risk and safeguard the global capital markets, while bringing clients innovative and effective tools to help grow their respective businesses.”
“We are pleased to welcome Mitsubishi UFJ Trust and Banking Corporation and The Bank of Tokyo-Mitsubishi, UFJ, Ltd as our first non-U.S. members of the Government Securities Division,” said Murray Pozmanter, DTCC Managing Director and General Manager, Clearing Services. “As DTCC continues to extend its worldwide footprint, we remain committed to strengthening our ability to manage risk and safeguard the global capital markets, while bringing clients innovative and effective tools to help grow their respective businesses.”
The Securities and Exchange Commission approved FICC’s proposed change to the GSD rules in 2009 to allow for direct membership of non-domestic entities. The rule change was prompted by modifications in U.S. bankruptcy laws which resulted in federal safe harbors expanding to apply to non-domestic entities that do not have an established U.S. branch or agency. The new law provides protection for the enforcement of FICC’s ability to access collateral held by FICC from the non-domestic member firm in the event of that firm’s insolvency.
“We are pleased to be the first non-U.S. firm to be granted membership to FICC’s Government Securities Division,” said Mr. Hisashi Kanamori, General Manager (GM) of the Treasury Division of Mitsubishi UFJ Trust & Banking Corporation (MUTB). “Membership brings enhanced risk management tools and operational efficiencies to MUTB through access to GSD’s central counterparty which guarantees all eligible trades.”
Established in 1986, GSD is the leading provider of automated comparison and settlement services, risk-management benefits and operational efficiencies to the Government securities industry.
Through multiple operating facilities and data centers around the world, DTCC and its subsidiary companies automate, centralize, and standardize the processing of financial transactions for thousands of institutions worldwide. With 40 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry, simplifying the complexities of clearance, settlement, asset servicing, global data management and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, derivatives, money market instruments, syndicated loans, mutual funds, alternative investment products, and insurance transactions. In 2011, DTCC’s subsidiaries processed securities transactions valued at approximately US$1.7 quadrillion. Its depository provides custody and asset servicing for securities issues from 122 countries and territories valued at US$39.5 trillion. DTCC’s global OTC derivatives trade repositories record more than US$500 trillion in gross notional value of transactions made worldwide across multiple asset classes.