Depository Trust Company (DTC)
DTC is a New York limited purpose trust company, a member of the Federal Reserve System, and a clearing agency registered with the SEC. DTC, the central securities depository for corporate equities and bonds, municipal government securities, and money market instruments, provides safekeeping and transfer of these securities. DTC participants include securities brokers, dealers, institutional investors, and depository institutions acting on their own behalf as well as functioning as custodians, issuing and paying agents, and settling banks for their customers.
Like Fedwire Securities, the safekeeping function involves the electronic recordkeeping of securities balances for participants, and the transfer function involves the transfer of securities between parties. DTC transfers securities on a gross basis throughout the day, while settling funds obligations on a net basis at the end of the day. During the transfer process, DTC will limit its credit exposure through participants' net debit caps. Any net debit position incurred by participants must be fully collateralized. End of day funds settlement occur over the Fedwire Funds Service through participants' settlement banks.Seewww.dtc.org for more information on DTC.
National Securities Clearing Corporation (NSCC)
Intrabank Payment and Messaging Systems