The Depository Trust & Clearing Corporation (DTCC) said today that, although US markets have announced they will close on Friday, 11 June, in honour of the death of former US President Ronald Reagan, DTCC’s subsidiaries responsible for transaction processing of US securities will remain open in order to clear and settle securities trades from earlier market activity.
The company said it will also process maturing money market instruments and follow normal allocation procedures for any periodic principal, dividend and interest payments due that day. DTCC’s fixed income business, as well as those involved in global corporate action services and credit default swaps, will operate as normal.
“We are deeply saddened and join with all Americans in mourning the death of our fortieth President, Ronald Reagan,” says Jill M. Considine, DTCC chairman and CEO. “Our heartfelt sympathy goes out to Mrs. Reagan and her family. While the nation stops to acknowledge this loss, DTCC has a special responsibility to continue operating to ensure the certainty and continuity of our financial markets. Our subsidiaries will be operating under close-to-normal schedules on Friday, and resume all processing activities when the exchanges and markets re-open Monday.”
The closing of exchanges and markets on 11 June will affect the processing activities of DTCC’s National Securities Clearing Corporation (NSCC) and The Depository Trust Company (DTC) as follows:
NSCC will accept and process comparison and adjustment input. Normal settlement will occur and there will be no changes in the processing of Continuous Net Settlement (CNS) transactions. CNS buy-ins for execution on June 11 will be null and void. Customers must request to re-initiate the buy-in procedures for execution on June 14. Envelope deliveries and charges will run as normal.
ACATS and ACATS-Fund/SERV processing will remain unchanged. All timeframes for Fund/SERV, Networking and Mutual Fund Profile remain unchanged. Insurance processing will occur as normal.
DTC: Normal delivery and settlement services will be provided. Money Market Instrument (MMI) maturity presentments, periodic interest payments and periodic principal payments will be processed as usual. All scheduled principal, interest and dividend payments will be allocated in accordance with normal procedures. All payments will occur as per normal procedures and will become part of DTC’s end of day settlement with settling banks, which will proceed as normal. Deposits, Requests for Withdrawals by Transfer, Rush Withdrawals by Transfer and other physical securities processing functions will continue to operate normally.
The following DTCC subsidiaries will also be operating as normal:
Fixed Income Clearing Corporation-both the Government Securities Division and the Mortgage-Backed Securities Division of FICC will remain open on Friday, and conduct business and settlement processing on a normal basis. Emerging Markets Clearing Corporation DTCC Deriv/SERV LLC. Global Asset Solutions LLC.