SIE EXAM CANDIDATES, DO YOU KNOW ABOUT THE DEPOSITORY TRUST (DTCC) OR ITS FUNCTIONS?

 

The Securities Industry Essentials (SIE) exam covers lots of nuts and bolts that hold the securities industry together and alive. One of the most important nuts and bolts is the Depository Trust and Clearing Corporation that assists in the back office of every brokerage firm. The Depository Trust (DTCC) provides clearing and transfer services to the brokerage industry in the U.S. and throughout the world. FINRA's SIE Content Outline includes knowledge of the DTCC in section 1.1.4. 

With volume of securities trades approaching millions on a daily basis, imagine brokerage operations without a centralized entity that could match buys with sells, and keep brokerage firm back offices running smoothly and efficiently! What chaos without an organization like the DTCC! What does the DTCC do? DTCC automates the recording of each trade and gives an exact report to each participating exchange. It also reports customers' positions in each of their securities to each brokerage firm. DTCC has subsidiaries: the National Securities Clearing Corporation (NSCC) and the Fixed Income Clearing Corporation (FICC).

Bob Eder's Study for the Securities Industry Essentials Exam contains a discussion of the the Depository Trust and Clearing Corp. on page 12 of the text, including a practice question. 

Here is the link to FINRA's Content Outline for the SIE exam. See the references to the DTCC in FINRA's Content Outline, section 1.1.4.

Study for the Securities Industry Essentials (SIE) Exam is available from Amazon in both paperback and Kindle e-book versions. 

See Bob Eder's Author Page on Amazon.com.

For questions about Bob Eder's SIE manual, Study for the Securities Industry Essentials (SIE) Exam, or questions in general about the SIE exam, such as the DTCC, feel free to email Bob Eder at bobeder@bobeder.net.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law in 2001. 

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