The Depository Trust & Clearing Corp. (DTTC) and the Canadian Depository for Securities (CDS) announced Tuesday that they will look into sharing technologies beyond their 20-year-old cross-border clearing ties.
Over the next four to six months, the two custodial and clearing organizations will look into sharing risk management and transaction services, as well as technology platforms and business-continuity planning.
For more than 20 years, the two organizations have been linked to clear and settle each others cross-border trades. Although both DTTC and CDS have other cross-border links, they said their ties with one another are their most robust international links. They said they were looking into furthering their ties because of this longstanding association and also because they share similar business models and technologies.
"We believe by leveraging strengths at CDS and DTCC, each of our organizations may be able to speed access to new services and capabilities, share technology upgrades and product enhancements, and expand the roles our respective staffs play in meeting customer requirements," the organizations said in a joint statement. They emphasized they are not looking to merge, however.