The World's Largest Company You Do Not Know About

[Guest 3rd Eye]

The Depository Trust & Clearing Corporation (DTCC)is the world's largest post-trade financial services company. DTCC was established in 1999 as a holding company to combine The Depository Trust Company (DTC) and National Securities Clearing Corporation (NSCC). It was set up to provide an efficient and safe way for buyers and sellers of securities to make their exchange, and thus "clear and settle" transactions. It also provides central custody of securities.

 

DTCC is a holding company established in 1999 to combine The Depository Trust Company (DTC) and National Securities Clearing Corporation (NSCC).

 

DTCC's joint venture company with Thomson Reuters, Omgeo, has over 6,000 customers in 45 countries and plays a critical role in institutional post-trade processing, acting as a central information management and processing hub for brokers, investment managers and custodian banks.

 

DTCC's Depository Trust Company (DTC) provides custody and asset servicing for 3.5 million securities issues, mostly stocks and bonds, from the United States and 110 other countries and territories, valued at $40 trillion, more than any other depository in the world.

 

In 2007, DTCC settled the vast majority of securities transactions in the United States, more than $1.86 quadrillion in value. DTCC has operating facilities in New York City, and at multiple locations in and outside the U.S.

 

We announced a joint venture with NYSE Euronext to create New York Portfolio Clearing (NYPC) for U.S. fixed income derivatives. Th is new company will bring significant benefits to the fixed income industry and expand DTCC's reach to a new asset class: futures.

 

During 2009, DTCC moved forward with the creation of another new subsidiary, The Warehouse Trust Company LLC (approved as a Federal Reserve System member in February 2010). Warehouse Trust will operate the Trade Information Warehouse as a U.S.-regulated trust company, reinforcing DTCC's commitment to embrace and support regulatory oversight in the global OTC credit derivatives market.

 

http://www.dtcc.com/...2009_report.pdf

[Guest StockJacky]

Cloud Centric Systems, Inc. (Pink Sheets:CLDR) CEO, David Lovatt announces today that the company would aggressively support its shareholders in a fight to remove the chill order put in place by the DTC.

 

On Thursday 3rd February 2011, the DTCC placed a 'Chill Order' on the stock of Cloud Centric Systems, Inc. meaning that stock could not be transferred using brokerages who are using DTC services. No explanation, prior or post notification, was given to the Board of Cloud Centric Systems in a move which has clearly damaged investor confidence.

 

David Lovatt, CEO of Cloud Centric said: "…I tried at least twenty times to get a response from the relevant parties at the DTCC but could receive no satisfactory reason as to why this had occurred. At one stage, I was told that they were under no obligation to speak with me; however, after several more calls in to their switchboard, a compliance officer agreed to call me back before Tuesday 8th February 2011. All efforts are being made to resolve this issue."

 

The company has taken steps to ensure that shareholders are furnished with the very latest information about this matter by setting up a blog on the company's website. It can be reached directly by going to http://www.cloudcentricsystems.com/content/investorrelations

 

In commenting on the cause of the Chill order, David Lovatt had this to say: "Whether there is a compliance issue around the decrease of the Authorized or whether, as we suspect, this action has been taken because of 'unclothed short selling' of our stock with the intent of artificially altering the price of the stock. We intend to fight aggressively to get back on track. Whatever action is required, legal or otherwise, will be taken to restore our good standing and to ensure the DTCC remove this restraint."

 

About Cloud Centric Systems:

 

Cloud Centric Systems specializes in cloud based technologies that use the Internet to deliver business critical applications via a global network of partners. Cloud Centric Systems plans to grow via strategic acquisition over the coming 12 months as well as strong sales through its subsidiaries, Cloud Centric Systems (UK) ltd and VizualMobile Ltd.

 

For more information, please visit www.cloudcentricsystems.com

[Guest EnronEx]

DTCC just set up an office in the District headed by Daniel Cohen, who will be managing director and head of government relations.

[Guest StockJacky]

Solar Park Initiatives, Inc. (OTCBB: SOPV), a Florida-based solar energy company dedicated to utility and commercial solar park developments in North America, today announced that Solar Energy Initiatives, Inc. has investigated the specifics behind the payment of a cash dividend in connection with its distribution of shares of Solar Park Initiatives, Inc. as previously announced. Solar Energy management, in its discussions with Depository Trust and Clearing Corporation ("DTCC"), has been advised by DTCC that such cash distribution was made by DTCC in error and DTCC is in the process of reversing the cash distribution. If you have received a cash dividend, we advise that you maintain custody of such proceeds until it is definitively determined as to how the proceeds are to be returned to DTCC.

 

Solar Park Initiatives, Inc. Business Strategy

 

Solar Park Initiatives intends to develop land for large utility scale solar photovoltaic ("PV") projects. The Company will provide engineering, procurement of products and construction ("EPC") via third party suppliers including its sister company Solar Energy Initiatives, Inc. SOPV will attempt to sell the resultant electrical production to various utilities and large commercial entities through a Power Purchase Agreement ("PPA"). The Company expects to provide energy savings to commercial and municipality users without any out of pocket engineering, procurement or construction ("EPC") costs to those users of energy.

[Guest Fedup]

DTCC can freeze out any company. They are the registered owners of 99% of all paper (stocks, bonds, securities, etc.) in the United States.

[Guest Ron Paul 2012]

The DTCC, via Cede & Co., is the registered owner of all shares held in "Street Name," which are all shares in margin accounts. It is unknown what, if any, loans or debts are collateralized by the stock "owned" by the DTCC.

[Guest EnronEx]

Here is a better definition.

 

Q. What is Cede & Co.?

 

Cede & Co. is merely the nominee name for DTC. DTC and Cede & Co. are synonymous and are often used interchangeably.

 

Q. What is "street name"?

 

"Street name" is the term given to securities held in the name of a brokerage on behalf of a customer, usually done to facilitate subsequent transactions. Street name refers to beneficial shareholders who maintain their ownership through a brokerage. Street name holders are the opposite of registered holders.

 

Q. Can I find out who the "street name" holders are?

 

Typically, "street name" beneficial owners are not identifiable. However, an issuer may be able to identify a portion of the "street" population by obtaining a listing of Non-Objecting Beneficial Owners ("NOBO" list). An issuer can request a NOBO listing from ADP. The listing will indicate those beneficial owners who have instructed their broker that they do not object to the disclosing of certain ownership information about themselves. Beneficial owners that do object to the disclosure of certain ownership information about themselves are called Objecting Beneficial Owners.

 

Non-Objecting Beneficial Owners and Objecting Beneficial Owners constitute the entire "street name" population. Consequently, a NOBO list will only provide the identities of a segment of the aggregate beneficial owner population.

[Guest Fedup]

The reason the public doesn't know about DTC is that they're a privately owned depository bank for institutional and brokerage firms only.

[Guest 3rd Eye]

Your bank or broker can't use their name on a stock certificate, they use a fictitious street name similar to an internet user name or avatar. Since the DTC is a banking trust they can't hold stock certificates in their name, so the DTC transfers the stock certificates to their private holding companies "CEDE and Company", "Cede Company" or "Cede & Co".

 

The banks and brokers are merely custodians for their clients. By federal law (SEC), they cannot hold any assets in the customer's name. The assets must be held in the name of DTC's holding company, CEDE & Co. That's how DTC has tens of trillion dollars of assets in trust. Since the stock and bond certificates you've purchased aren't in your name, then the "holder" (the Federal Reserve System) could theoretically refuse to surrender them back to you under a "national emergency" according to the Trading with the Enemy Act (as amended).

[Guest AJ]

The common stock of LargeCo, Inc. is publicly traded on the New York Stock Exchange. Over 2/3rds of the shares are registered on LargeCo's books in the name of Cede & Co. Cede is a depository company which holds the shares as nominee on behalf of brokerage firms, mutual funds and other active traders. The brokerage firms in turn are also nominees with respect to some of the shares, which they hold on behalf of their customers. Nominees, such as Cede and brokerage firms holding for customers, view the customer as the beneficial owner of the shares and consider the customer to be the one with the right to vote the shares; mutual funds, however, view the fund as the owner of the shares it holds and vote the shares themselves.

[Luke_Wilbur]

I know nothing of the DTCC, but I find this topic fascinating and deeply complicated. Here is a old story by the Wall Street Journal that simplifies what the DTCC does.

 

Depository Trust & Clearing Corp. is a little-known institution in the nation's stock markets with a seemingly straightforward job: It is the middleman that helps ensure delivery of shares to buyers and money to sellers.

 

About 99% of the time, trades are completed without incident. But about 1% of the shares -- valued at about $2.5 billion on a given a day -- aren't delivered to the buyer within the requisite three days, for one reason or another.

 

These "failures to deliver" have put DTCC in the middle of a long-running fight over whether unscrupulous investors are driving down hundreds of small companies' share prices.

 

http://online.wsj.com/public/article/SB118359867562957720-5Yb1Y_mpcl9a2nKbc0IaV0tDHyk_20070712.html

[Guest Old Glory]

This Commission is no different than any association that any United States citizen can set up. The Federal Reserve and Depository Trust & Clearing Corp. emulate government institutions that we tend to believe are real and give our taxpayer dollars. These financier cartels or underwriters organize our lives in ways all parties can benefit.

 

In Addition, these trusts, reserves, and revenue services do a wonderful job for businesses that belong in their network. But, we are in a time of financial crisis. The U.S. Treasury needs the money that is being skimmed from the top. We pay dearly for the variances in the Commodity and Stock Markets. The Exchange is becoming only beneficial only to those that do not get shorted. This analog way of thinking will short our Nation if something is not changed soon.

 

It is time that Congress needs to take money from these institutions and have them pay directly to the Defense department and charge a physical reserve protection fee to the United States General Treasury that can be viewed by Johnny Q. Public. That is you and me.

 

The Pendulum of of Fortune will go to the enlighten ones and the expense go to the ignorant.

 

Use Community Banks. They have smaller networks and are more inclined to to get your business. Newspapers are writing that the Washington, DC metro area has stepped out of the recession and employment is at six percent. So now is the time for merchants to invest. Go to the Small Business Administration and see if they can help you. I am hoping to hear less doom and gloom and more realty.

 

I want to hear the story of who is going to be the next Thomas Edison of Economic Theory not what is going on the Grammys, Oscars, or Emmys. Entertainment should be less violent.

 

Aside: Do parents see the games their children are playing? Do they know what manner their children are communicating? We need people to step outside and really see how great the United States is.

 

We are wild, wonderful, free, and have great Community support. Church, government, and local business is where its at. Listen to your elders and read history.

[Guest SJ]

On Thursday 10th February 2011, the Attorney for Cloud Centric Systems, Inc, Ms. Hamilton, received the following information from the DTCC in the form of an email:

 

"In cases where DTC places a restriction on services due to legal and regulatory concerns regarding the freely transferable status of shares held in our nominee name of Cede & Co, DTCC will consider requests for reinstatement of services. Given that DTCC performs back office processes on behalf of its bank and broker dealer Participants, we will consider a review for reinstatement of services provided that request originates from a DTCC Participant. To date, no DTCC Participant has contacted us requesting reinstatement of services for Cloud Centric. A list of our Participants is available on our web site" (http://www.dtcc.com/downloads/membership/directories/dtc/alpha.pdf)

[Guest LAW]

Sometimes its best to go straight to the source.

 

http://www.dtcc.com/news/press/releases/2011/press_release_donahue_house_financial.php

 

Donald F. Donahue, chairman and chief executive officer of The Depository Trust & Clearing Corporation (DTCC), today called continued cooperation between global regulators and market participants essential to enhancing transparency in the over-the-counter (OTC) derivatives market.

 

In testimony today before the House Financial Services Committee, Donahue said that the high level of transparency envisioned by Dodd-Frank could be achieved across the entire derivatives market within six to nine months after the final regulations are implemented. However, Donahue stressed that the key to meeting this timeframe is ensuring a high level of cooperation between global regulators and market participants, as well as the continued use of proven, non-commercial infrastructure that distinguishes the function of swap data repositories (SDRs) from commercial considerations and jurisdictional squabbles.

 

“It is our sense, as a user-governed and regulated utility servicing most of the major regulators worldwide, that the market participants and regulators globally are poised to undertake the significant cooperative effort necessary to provide complete transparency to these markets as contemplated by the Dodd-Frank Act,” Donahue said. “It is our strong belief that while many of the regulatory aspects of Dodd-Frank Act remain in development, transparency is a policy option that is most ripe for implementation.”

 

In his testimony, Donahue stressed that transparency is key to mitigating systemic risk – and that providing transparency requires a cooperative effort between global regulators and market participants. As an example, Donahue cited the cooperation between regulators and the industry in the wake of the financial crisis to enhance transparency in the credit default swaps (CDS) market by leveraging DTCC’s Trade Information Warehouse (TIW).

 

The TIW is a centralized, comprehensive global electronic database containing detailed trade information for the market. The TIW database currently represents about 98 percent of all credit derivative transactions in the global marketplace; constituting approximately 2.3 million contracts with a gross notional value of $29 trillion.

DTCC leverages the TIW to publish comprehensive market-wide CDS information free of charge to the general public and provide comprehensive standard position risk reports to appropriate authorities worldwide (as well as responding to over 100 ad hoc requests from such authorities). In addition, DTCC has inaugurated an “on-line” portal for regulators to securely and directly access detailed data from the TIW’s global data set. At present, 19 different regulators worldwide have linked to this portal.

 

“Had the TIW’s information been as comprehensive in the run up to 2008 as it is now, much of the exposure uncertainty that contributed to market instability at the time, at least in the CDS market, could have been mitigated,” Donahue said.

 

Donahue noted that the TIW’s success in enhancing transparency in the CDS market was attributable to the substantial degree of global regulatory cooperation achieved through the Over-the-Counter Derivatives Regulators Forum and the OTC Derivatives Regulators Supervisors Group. Another factor was DTCC role as a non-commercial entity with no motivation for holding the data other than to help both the regulators and market participants by providing a central place for data to be reported and for regulators to access it for both market surveillance and risk surveillance purposes.

 

“It was critical to the success of this process to remove commercial concerns from what is and should remain primarily a regulatory and supervisory support function,” Donahue said. “As a true industry-governed utility, with both buy-side and sell-side firms, not to mention self-regulatory organizations, as stakeholders, DTCC has so far been able to secure the cooperation of virtually all market participants and all clearers and trading platforms with any significant volume. The challenge going forward is to bring similar regulatory and public transparency to other parts of the swap markets.”

 

Donahue warned that if regulatory cooperation or the cooperation of market participants fails, data would be fragmented, inevitably leading to misleading reporting of exposures and a very expensive “fix” for the regulators and the marketplace generally.

 

“Fragmentation of data will leave the task to regulators of rebuilding in multiple instances the complex data aggregation and reporting mechanisms that have already been created,” Donahue said. “That task was one of the primary reasons that the industry and regulators themselves created a single place for the data within DTCC.”

 

About DTCC

 

DTCC, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC's depository provides custody and asset servicing for more than 3.6 million securities issues from the United States and 121 other countries and territories, valued at US$36.5 trillion. In 2010, DTCC settled nearly US$1.66 quadrillion in securities transactions. DTCC has operating facilities and data centers in multiple locations in the United States and overseas.

[Guest Faded Glory]

Depository Trust & Clearing Corp., operator of a global registry for credit-default swaps, said it’s providing customized trade data to 19 global regulators.

 

The reports allow market supervisors and central banks to monitor the aggregate positions and counterparties of regulated firms within their jurisdiction, the New York-based company said in a statement.

 

Credit-default swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a borrower fail to adhere to its debt agreements.

 

http://www.bloomberg.com/news/2011-02-15/regulators-get-access-to-default-swaps-trading-data-dtcc-says.html