The American central securities depository, the Depository Trust & Clearing Corporation (DTCC), has expanded its London office. A new facility at Broadgate West in the City will enable the CSD to support a growing clientele in Europe and beyond, says DTCC in a statement.
Expanding in London is a bold move for the American CSD, which launched a number of initiatives at the turn of the century – including a central counterparty clearing house – designed to enlarge its franchise in Europe. Most encountered indifference, and occasionally outright hostility, from European banks and CSDs. The DTCC was excluded from central matching initiatives, despite its expertise in the field, and has eventually to form a joint venture with Thomson ESG instead. Omgeo, the fruit of that alliance, has yet to penetrate the European marketplace – and especially the Continental European marketplace – in the same way as it has in the United States.
What has helped to change perceptions is the growing sense of impending operational crisis in the OTC derivatives markets, which has encouraged many London-based investment banks and fund managers to adopt the PTC derivative matching and data warehousing services developed by the DTCC in the United States.
“By strengthening our London presence, we will have an even broader base to provide our customers with increased service and support throughout Europe,” says William B. Aimetti, DTCC’s chief operating officer. “Since nearly half of our customer base are firms that operate globally, we are committed to expand our facilities in Europe to meet the growing needs of our global customers, who are looking to DTCC to help them reduce operational costs, streamline processing and manage risk wherever they operate.”
The DTCC London already office serves as the regional customer centre for its services, including DTCC Deriv/SERV and the Trade Information Warehouse for OTC derivatives, plus the Global Corporate Action Validation Service (GCA VS). DTCC says a new service now being developed for the alternative investment product (AIP) market will also be supported from London. In addition, says DTCC, the London office also provides a “critical liaison to DTCC’s European counterparts and industry organisations, as well as global hedge funds.” The London office currently supports a range of functions, including relationship management, software development, business development and day-to-day customer support. DTCC has more than doubled its London staff over the past year and anticipates additional staffing to meet its growing market needs in Europe.