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A Few Common Clearing Service Providers

The Depository Trust Company

The DTC (a subsidiary of the Depository Trust & Clearing Corp.) is a member of the U.S. Federal Reserve System, a limited-purpose trust company under New York State banking law and a registered clearing agency with the SEC. The depository retains custody of 2 million securities issues, effectively "dematerializing" most of them so that they exist only as electronic files rather than as paper, according to the organization.

The Fedwire Funds Service provides a real-time gross settlement system in which more than 9,500 participants initiate funds transfers that are immediate, final and irrevocable when processed. Participants use Fedwire to handle large-value, time-critical payments, such as payments for the settlement of interbank purchases and sales of federal funds; the purchase, sale and financing of securities transactions; the disbursement or repayment of loans; and the settlement of real estate transactions.

The Fedwire Securities Service consists of a safekeeping function and a transfer and settlement function. The safekeeping function involves the electronic storage of securities records in custody accounts. The transfer and settlement function involves the transfer of securities between parties.

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WestLB Securities Inc. Looks to Outsource Back-Office Functions Without Giving Up Self-Clearing Status
ADP will assume responsibility for WestLB Securities' back-office functions, such as clearing and custody, while allowing the firm to maintain self-clearing capability.

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