Monday, 31 December 2012

DTCC Makes Its Way to Singapore



The Depository Trust & Clearing Corporation (DTCC), arguably one of the world's most important entities for securities trading, announced last week the launching a brand-new data centre in Singapore. The new facility is the latest in the corporation's portfolio, which also includes data centres in the Netherlands and the U.S.

DTCC launched the new data centre with the intention of making it an integral part of the Global Trio infrastructure powering the company's international trade services. In choosing Singapore as the site, they are also helping to advance their expansion into Asian markets. Singapore is an important player for securities trading in Asia.

DTCC President and CEO Michael Bodson said in his official remarks that by placing the new data centre in Asia his company is "working to ensure the regions’ regulators have the ability to gain seamless and timely access to the transaction data relevant to their areas of jurisdiction." This strategy is an important one due to the nature of financial sector regulations from one country to the next.

Bodson went on to say that all of DTCC's data centres provide securities processing, data communications, and reporting to regulatory agencies around the clock, every day of the year. The design of their new data centre is part of the commitment to providing the financial sector with increased transparency and lower risk. The OTC derivatives market demands no less.

It is unclear how many datacentre jobs will be added in order to make the Singapore facility function. The company has not said whether they plan to hire locally or move other workers from Europe and North America to Asia. In either case, the data centre provides much-needed financial transaction processing to Asia. It also provides a vital link between the three most powerful financial markets in the world.

 

Regulatory Compliance at the Forefront 


When we talk about new data centres, we typically think of things like speed, redundancy, and uptime. Moreover, while these things are certainly part of the scope of operations for DTCC, they have a more pressing challenge by way of regulatory compliance. Derivatives trading is different in every country in terms of how trades are legally carried out and the reporting requirements imposed on traders. It is vital DTCC gets this right regardless of where a specific facility is located.

There is no reason to believe the company will not exceed their regulatory requirements. With their roots dating back to 1973, DTCC has grown to be the world's largest post-trade financial services company serving both commercial and institutional clients. Their reputation is second-to-none.

We would expect the same level of quality they have demonstrated for nearly 40 years to be carried through to their Singapore facility. If they do well there, a next step might possibly be Japan or Hong Kong. In the meantime, the services they offer to their Asian customers via the Singapore data centre should only serve to enhance their reputation in the OTC derivatives market.

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