how the depository trust company dtc works
the depository trust company dtc is registered with the securities and exchange commission sec is a member of the u s federal reserve system and was created to reduce costs and provide clearing and settlement efficiencies by immobilizing securities and making book entry changes to the ownership of the securities 2the largest broker dealers and banks in the united states are dtc participants and they deposit and hold securities at the dtc which appear in the records of an issuer s stock as the sole registered owner of those securities deposited at the dtc the dtc provides financial institutions with a record of net settlement obligations at the end of each day from trading in equity debt and money market instruments in 2021 the dtc held more than 1 3 million current securities issues valued at 87 trillion and issued in the u s and 131 countries and territories 1history of the dtcin 1968 as the new york stock exchange nyse became overwhelmed by the paperwork involved with trade volume it installed the functions of dts or maintenance of daily share prices through its central certificate service ccs a securities depository established to serve nyse member firms dtc was created in early 1973 to acquire the business of ccs and to expand the benefits of the depository approach to other areas of the financial industry particularly the bank sector 3the depository trust and clearing company dtcc owns the dtc and manages risk in the financial system formerly an independent entity the dtc was consolidated with several other securities clearing companies in 1999 and became a subsidiary of the dtcc the dtc has allowed the new york stock exchange to increase its trade volume to billions per day functions of the dtcthe dtc holds trillions of dollars worth of securities in custody including corporate stocks and bonds municipal bonds and money market instruments individuals do not interact with the dtc but securities brokers dealers institutional investors depository institutions issuing and paying agents and settling banks do owned by many companies in the financial industry with the nyse being one of its largest shareholders the dtc provides services including 