The Alternative Data Podcast The DTCC Episode
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Apr 11, 2022 Tim Lind from the Depository Trust & Clearing Corporation dives into the unsung importance of the DTCC within capital markets. He discusses the shift from physical stock certificates to digital ownership, highlighting the need for real-time data visibility. Tim also explores the transition from LIBOR to new financial benchmarks, emphasizing the necessity of alternative indices. The conversation reflects on the evolving landscape of retail investing, particularly how technology and social media are reshaping the behavior of young investors compared to traditional institutions.
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Physical vs. Electronic Stocks
- DTCC primarily handles electronically registered stocks, facilitating their transfer and settlement.
- Physical stock certificates still exist, representing a small portion of transactions outside DTCC's purview.
Data Visibility and Timeliness
- The DTCC gains visibility on trades the same day they occur, often publishing data on a T+1 basis.
- They are increasingly moving towards intraday data releases to meet customer demand for timely information.
DTCC's Data Business
- DTCC recognized the commercial value of its trade data about 5-6 years ago, leading to the creation of its data services business.
- Their data products, branded as "Kinetics," offer insights into market movements and sentiment.