The Depository Trust & Clearing Corporation’s (DTCC) equities clearing subsidiary processed a record 76.7 million transactions worth more than $1.54 trillion on Feb. 27, a 53 percent increase over the peak volume in 2006.
The volume spike marked the beginning of a volatile five-day period for U.S. equity markets, when a plunge in the Chinese stock market and worries about economic growth at home and abroad sparked a sudden sell off, resulting in the highest volumes ever experienced by the clearing corporation.
The Dow Jones industrials lost 416 points by market close that day, its biggest point drop since trading resumed after the Sept. 11, 2001, terrorist attacks. Transaction volumes for each of the following four trading days after Feb. 27 all substantially exceeded the peak volume in the prior year by 34 percent on average.
“At DTCC, we understand that having the processing capacity to handle unpredictable spikes in trading volume and managing risk in volatile markets is critical to maintaining confidence that our markets will operate without interruption,” says William B. Aimetti, DTCC’s chief operating officer. “But just because this happens so seamlessly does not mean it should be taken for granted. While our role is carried out quietly behind the scenes, it’s at times like this that the financial services industry is reminded of our trusted role as a leader in protecting the safety, soundness and competitiveness of U.S. capital markets.”