Post by jannikki on Dec 29, 2005 21:19:55 GMT -4
DTCC Announces Largest Fee Reduction Ever, Irish Stock Exchange Creates Central Counterparty, and more
By WS&T Staff
December 15, 2005
The Depository Trust & Clearing Corp. (DTCC) has announced a fee change for 2006 for its subsidiaries, which results in a net fee reduction of $161.3 million, the largest net reduction ever made by the organization. The changes affect DTCC subsidiaries including National Securities Clearing Corp. (NSCC), The Depository Trust Company (DTC) and Fixed Income Clearing Corp. (FICC).
Several factors allowed DTCC the room to reduce fees including tightened expense controls across the organization and the fact that processing volume increased substantially this year for many businesses. Further, several projects causing the DTCC to incur additional expenses over the past four years have now been completed. These include the creation of the Southern Business Center in Tampa, Fla., for business continuity and the insourcing of data processing done by the Securities Industry Automation Corp.
“Driving down clearance and settlement costs in the U.S. capital market not only benefits our customers, but further ensures that overall transaction costs remain low, keeping our markets the most vibrant and desirable place for issuers and investors to meet their financial needs,” said Donald Donahue, DTCC’s chief operating officer, in a release.
The fee reductions are as follows:
NSCC fees will be reduced by approximately $99.4 million with reductions in fees for trade comparison and recording services.
DTC fees will be reduced by approximately $36.6 million, including the elimination of fees for messaging and file transfers for all depository services, and the reduction of settlement services fees.
FICC fees will be reduced by approximately $25.3 million with reductions for trade submission and trade netting for U.S. government securities, Settlement-Balance Order options and trade-for-trade submissions in mortgage-backed securities.
The majority of fee reductions will go into effect on January 2, 2006. Since DTCC subsidiaries began operating in late 1970s, the average transaction cost per trade has gone from $1.64 to just seven cents in 2005.
Irish Stock Exchange Launches Central Counterparty
The Irish Stock Exchange (ISE) in partnership with Deutsche Börse and CRESTCo Limited announced the launch of The Central Counterparty (CCP) for securities traded on the order book of the exchange. The purpose of the CCP is to serve as a well-capitalized entity that becomes buyer to every sale and seller to every buy for eligible trades in a particular market. The CCP is the end result of the organizations’ joint initiative that began in February of this year.
The ISE expects the CCP arrangement to enhance liquidity for investors, reduce risks for market participants and provide increased efficiencies in post-trade processing and treasury management. It will do so by offering post-trade anonymity, appearing as buyer and seller in all trades, and the virtual guarantee of the settlement of all eligible trades, reducing exposure to counterparty default risk.
“The partnerships with Deutsche Börse and CRESTCo have served the Irish equity market well, specifically with strong and sustained growth in trading volumes, increased international participation in the market, and the provision of an efficient and cost-effective market infrastructure,” said Brian Healy, ISE’s director of trading and regulation, in a release. “The launch of a central counterparty for the Irish equity market is a further major development of our market infrastructure and positions the market well for further sustained growth.”
With the introduction of the CCP there are now four entities offering clearing services in the Irish market: Pershing Securities Limited, Man Financial Limited, BNP Paribas Securities Services SA and KAS Bank NV.
BT Radianz to Use ClickSchedule on Core Networks
BT Radianz has selected ClockSoftware Technologies Ltd.’s ClickSchedule as its solution for scheduling changes on its core networks. ClickSoftware is a provider of workforce and service optimization solutions. BT Radianz provides secure, reliable and scalable connectivity to the global financial community.
BT Radianz has an operational staff around the world managing its core network changes. The company provides secure Internet protocol connectivity to more than 10,000 financial institutions sites internationally.
Due to the nature of its business, BT Radianz’s core network changes must be scheduled and executed with extreme care and forethought. BT Radianz’s financial services customers demand absolute reliability to run mission-critical initiatives that power the world economy.
“Our financial customers require 100% network availability, so scheduling of core network changes at BT Radianz is subject to a complex risk and impact analysis, as well as a tightly controlled authorization process,” explained Mark Akass, vice president of engineering at BT Radianz, in a release. “We needed a solution that could meet the particular needs of our business model, and ClickSchedule provides the flexibility that we require.”
Akass added that BT Radianz has already begun to benefit from the implementation of ClickSchedule and the improved visibility provided by the system. “The system is already giving us a better understanding of where jobs are positioned on the schedule and how they are related, which helps us provide the level of customer service that our client base expects,” he said in the statement.
FactSet Chooses the Valordata Feed from Telekurs
Financial intelligence provider FactSet Research Systems has selected the Valordata Feed (VDF) from Telekurs Financial to augment its securities master file.
VDF includes security descriptions, global instrument and issuer identifiers as well as corporate actions and events. The feed delivers information from Telekurs’ database of structured, encoded securities information.
“We chose the Valordata Feed from Telekurs for its combination of structured database and fully encoded data, as well as for the flexible instrument selection and output formats. We appreciate their extensive global coverage and high quality,” said Robert Magri, vice president and director of FactSet content and strategic partnerships, in a release.
FactSet Research Systems is a provider of global financial and economic information, including fundamental data on tens of thousands of companies. Its online service combines more than 200 databases and provides the tools to download, combine and manipulate the data for investment analysis.
www.financetech.com/news/showArticle.jhtml?articleID=175003556
By WS&T Staff
December 15, 2005
The Depository Trust & Clearing Corp. (DTCC) has announced a fee change for 2006 for its subsidiaries, which results in a net fee reduction of $161.3 million, the largest net reduction ever made by the organization. The changes affect DTCC subsidiaries including National Securities Clearing Corp. (NSCC), The Depository Trust Company (DTC) and Fixed Income Clearing Corp. (FICC).
Several factors allowed DTCC the room to reduce fees including tightened expense controls across the organization and the fact that processing volume increased substantially this year for many businesses. Further, several projects causing the DTCC to incur additional expenses over the past four years have now been completed. These include the creation of the Southern Business Center in Tampa, Fla., for business continuity and the insourcing of data processing done by the Securities Industry Automation Corp.
“Driving down clearance and settlement costs in the U.S. capital market not only benefits our customers, but further ensures that overall transaction costs remain low, keeping our markets the most vibrant and desirable place for issuers and investors to meet their financial needs,” said Donald Donahue, DTCC’s chief operating officer, in a release.
The fee reductions are as follows:
NSCC fees will be reduced by approximately $99.4 million with reductions in fees for trade comparison and recording services.
DTC fees will be reduced by approximately $36.6 million, including the elimination of fees for messaging and file transfers for all depository services, and the reduction of settlement services fees.
FICC fees will be reduced by approximately $25.3 million with reductions for trade submission and trade netting for U.S. government securities, Settlement-Balance Order options and trade-for-trade submissions in mortgage-backed securities.
The majority of fee reductions will go into effect on January 2, 2006. Since DTCC subsidiaries began operating in late 1970s, the average transaction cost per trade has gone from $1.64 to just seven cents in 2005.
Irish Stock Exchange Launches Central Counterparty
The Irish Stock Exchange (ISE) in partnership with Deutsche Börse and CRESTCo Limited announced the launch of The Central Counterparty (CCP) for securities traded on the order book of the exchange. The purpose of the CCP is to serve as a well-capitalized entity that becomes buyer to every sale and seller to every buy for eligible trades in a particular market. The CCP is the end result of the organizations’ joint initiative that began in February of this year.
The ISE expects the CCP arrangement to enhance liquidity for investors, reduce risks for market participants and provide increased efficiencies in post-trade processing and treasury management. It will do so by offering post-trade anonymity, appearing as buyer and seller in all trades, and the virtual guarantee of the settlement of all eligible trades, reducing exposure to counterparty default risk.
“The partnerships with Deutsche Börse and CRESTCo have served the Irish equity market well, specifically with strong and sustained growth in trading volumes, increased international participation in the market, and the provision of an efficient and cost-effective market infrastructure,” said Brian Healy, ISE’s director of trading and regulation, in a release. “The launch of a central counterparty for the Irish equity market is a further major development of our market infrastructure and positions the market well for further sustained growth.”
With the introduction of the CCP there are now four entities offering clearing services in the Irish market: Pershing Securities Limited, Man Financial Limited, BNP Paribas Securities Services SA and KAS Bank NV.
BT Radianz to Use ClickSchedule on Core Networks
BT Radianz has selected ClockSoftware Technologies Ltd.’s ClickSchedule as its solution for scheduling changes on its core networks. ClickSoftware is a provider of workforce and service optimization solutions. BT Radianz provides secure, reliable and scalable connectivity to the global financial community.
BT Radianz has an operational staff around the world managing its core network changes. The company provides secure Internet protocol connectivity to more than 10,000 financial institutions sites internationally.
Due to the nature of its business, BT Radianz’s core network changes must be scheduled and executed with extreme care and forethought. BT Radianz’s financial services customers demand absolute reliability to run mission-critical initiatives that power the world economy.
“Our financial customers require 100% network availability, so scheduling of core network changes at BT Radianz is subject to a complex risk and impact analysis, as well as a tightly controlled authorization process,” explained Mark Akass, vice president of engineering at BT Radianz, in a release. “We needed a solution that could meet the particular needs of our business model, and ClickSchedule provides the flexibility that we require.”
Akass added that BT Radianz has already begun to benefit from the implementation of ClickSchedule and the improved visibility provided by the system. “The system is already giving us a better understanding of where jobs are positioned on the schedule and how they are related, which helps us provide the level of customer service that our client base expects,” he said in the statement.
FactSet Chooses the Valordata Feed from Telekurs
Financial intelligence provider FactSet Research Systems has selected the Valordata Feed (VDF) from Telekurs Financial to augment its securities master file.
VDF includes security descriptions, global instrument and issuer identifiers as well as corporate actions and events. The feed delivers information from Telekurs’ database of structured, encoded securities information.
“We chose the Valordata Feed from Telekurs for its combination of structured database and fully encoded data, as well as for the flexible instrument selection and output formats. We appreciate their extensive global coverage and high quality,” said Robert Magri, vice president and director of FactSet content and strategic partnerships, in a release.
FactSet Research Systems is a provider of global financial and economic information, including fundamental data on tens of thousands of companies. Its online service combines more than 200 databases and provides the tools to download, combine and manipulate the data for investment analysis.
www.financetech.com/news/showArticle.jhtml?articleID=175003556