Three subsidiaries of the Depository Trust & Clearing Corporation (DTCC) have been recognised for their superior creditworthiness and risk management capabilities in meeting their clearing and settlement obligations.
In recognition, Moody’s Investor Services has given its highest issuer ratings to the Depository Trust Company (DTC), the National Securities Clearing Corporation (NSCC) and Fixed Income Clearing Corporation (FICC).
Each of the subsidiaries received ‘Aaa’ long-term and Prime-1 short-term issuer ratings for their strong risk management processes and the role each clearing agency plays in the post-trade operations supporting the US financial markets.
In addition, the ratings were also given for their ability to meet clearing and settlement obligations to counterparties during periods of financial stress, including member defaults.
In a recent announcement, Moody’s said: “DTCC’s subsidiaries’ dominant and entrenched positions in post-trade services as well as their robust default management framework.”
The announcement also cited the handling of the Lehman collapse as “proxy for their operational and risk management resilience” with processes that protected other members and the firms themselves from the loss during that event.
Michael Bodson, CEO of DTCC, said: “We are pleased Moody’s has recognised DTC, NSCC and FICC as financially sound, stable and trusted clearing agencies.”
“DTCC has long been committed to protecting the stability and integrity of global financial markets, and these ratings are an acknowledgement of the robust risk management and financial controls that we have implemented across the organisation.”
