Depository Trust Company
the depository trust company, founded in 1973 and based in new york city, is one of the world's largest securities depositories. it provides electronical recordkeeping of securities balances and acts like a clearinghouse to process and settle trades in corporate and municipal securities. because the dtc is an automated system, it lowers trading costs, improves accuracy and increases the number of trades that can occur each day. before the dtc existed, the new york stock exchange had grown so popular that ? having trouble ? its trade volume which was then in excess of 8,000,000 shares per day. thanks in part to the dtc, the nyse now can handle billions of shares per day. ? is the cfo of xyz corp, an institutional investor. she uses the dtc as a custodian for xyz's corporate stocks and bonds, municipal bonds and money market instruments. it settles funds at the end of each trading day using the fedwire funds service. she trusts the dtc because it is registered with the sec, is a member of the federal reserve system and is owned by many companies in the financial industry with the nyse being one of its largest shareholders. ? not only uses the dtc as a custodian for xyz's investments, she also uses it to manage xyz's own shares. in addition to safekeeping, recordkeeping and clearing services, the dtc provides direct registration, underwriting, reorganization and proxy and dividend services. for example, when xyz corp to ? a dividend, the dtc announces it, collects the dividend payment from xyz, allocates dividends to shareholders and reports those payments. securities brokers, dealers, institutional investors, depository institutions, issuing and paying agents and settling banks use the dtc. but, when ? places trades in her own account as an individual investor, she does not interact with the dtc, ? financial institution does.
- money market instrument・・・短期金融資産
- federal reserve system・・・連邦準備制度→https://ja.wikipedia.org/wiki/%E9%80%A3%E9%82%A6%E6%BA%96%E5%82%99%E5%88%B6%E5%BA%A6
- depository institution・・・預貯金取扱金融機関