The Depository Trust & Clearing Corporation (DTCC) said Friday it has resumed the daily physical processing of securities from its Brooklyn operations center, following the effects of superstorm Sandy on the East Coast.
The corporation said it had re-established critical processing and mechanisms for clients to receive position credit for deposits, reorg entitlements, and Direct Registration System (DRS) statement withdrawals. DTCC also began supporting Deposit Services for clients able to make delivery of physical securities to DTCCs Brooklyn location.
In contrast, however, DTCC said its headquarters location in lower Manhattan sustained significant water damage as a result of storm flooding. While DTCC is closely monitoring the situation, the building remains inaccessible until power is restored and an on-site health and safety inspection can be completed, the DTCC said Friday. As the DTCC vault was sealed prior to evacuating the building and remains submerged, determining the extent of the damage would be speculative at this point.
Although sea water levels have returned to normal, the lower floors in the building remain flooded. Our computer records are fully intact, including detailed inventory files of the contents of the vault, said Michael Bodson, CEO and president, DTCC. At this point, it is pre-mature to make an accurate assessment as to the full impact of the water damage nor would it be helpful to project on what specific actions need to be taken with respect to our vault. We are aggressively working on this situation to minimize disruption to our clients and will provide additional updates as more information becomes available.
(JDC)