DTCC calls for DLTs to end silo mentality

The Depository Trust & Clearing Corporation (DTCC), the post-trade market infrastructure for the global financial services industry, says it today issued a new ‘white paper’. In it, the DTCC calls for industry-wide collaboration in leveraging distributed ledger technologies to modernise, streamline and simplify the siloed design of the financial industry infrastructure and address certain limitations of the current post-trade process.

“The industry has a once-in-a-generation opportunity to reimagine and modernize its infrastructure to resolve long-standing operational challenges,” said Michael Bodson, President and CEO at DTCC. “To realise the potential of distributed ledger technology in a responsible manner and to avoid a disconnected maze of siloed solutions, the industry must work together in a co-ordinated fashion.”

The paper, Embracing Disruption – Tapping the Potential of Distributed Ledgers to Improve the Post-Trade Landscape, notes that while today’s financial market infrastructures have a proven track record of providing stability, reliability and certainty, they are often quite complex, siloed and not equipped for 24/7/365 processing.

DTCC says it  believes a secure distributed ledger, with complete and traceable transaction history for a set of assets that is shared and accessible only between trusted parties, could provide significant operational improvements as well as further mitigate risk and reduce post-trade costs.