The Depository Trust & Clearing Corp. stayed operational during all of Hurricane Sandy, despite other institutions closing and the flooding of it’s underground vault.
According to a Bloomberg
story by Nina Mehta, that’s because it has to.
“We can live without the NYSE and we can live without Citigroup, because their competitors will quickly fill the gap,” Georgetown business Professor Hames Angel told Mehta by e-mail. “We can’t live without DTCC because there is no substitute. They are one of the most important pieces of our financial infrastructure and the epitome of the ’must not fail’ institution.”
The very lengthy article goes into intricate detail of exactly why the DTCC must remain open, and how exactly it worked to continue to process its trades. It’s a bit of a read, but definitely worth a look if you have a bit of downtime.
You can read the original here
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