The company that holds legal title to about 80% of all American stocks announced this week that it will separate the role of chairman and chief executive officer following a two-year review of the organization’s governance.
Splitting the roles will increase its oversight of risk management and follows a growing trend by international companies that have adopted this reform.
The CEO will oversee the DTCC’s overall business strategy and operations that relate to the daily running of the company and will report to the chairman.
But it says that DTCC’s risk management and compliance departments will report directly to the chairman to heighten independence, leading to a system of “checks and balances” between the business and control functions. (Global Financial Strategy)
DTCC’s depository provides custody and asset servicing for 3.6 million securities issues from the United States and 121 other countries and territories, valued at almost $34 trillion. DTCC’s subsidiary, The Depository Trust Company (DTC), established in 1973, was created to reduce costs and provide clearing and settlement efficiencies by immobilizing securities and making “book-entry” changes to ownership of the securities. In 2009, DTC settled transactions worth more than $299 trillion, and processed 299.5 million book-entry deliveries.
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