Banner

The Depository Trust & Clearing Corporation: Innovative use of BT Radianz Managed Infrastructure connections helps DTCC extend global reach

Enquire now

Overview

Groundbreaking relationship with BT helps DTCC enter new markets, while its participants mitigate risks and save costs

The Depository Trust & Clearing Corporation (DTCC) provides clearing, settlement, and information services throughout the USA and worldwide. In increasing its penetration – especially outside the USA – it wanted to avoid imposing extra infrastructure costs on its participants.

Joseph Anastasio realised many possible new participants were already users of the BT Radianz Managed Infrastructure. So it made sense for DTCC and BT to talk about alternative business models, using the BT Radianz Managed Infrastructure to access DTCC services.

Because BT Radianz is in use by thousands of financial institutions around the world, confidence in its service quality offers reassurance to new DTCC participants. They report that connecting via their BT Radianz service is cost effective and secure.

We found that BT shared our values and our commitment to bring ever-increasing safety, soundness, and operational efficiencies to global financial markets. They were very responsive to our requirements.”
- Joseph Anastasio, IT Director, Network Communications, DTCC

Challenge

A not-for-profit organisation owned by its participants, The Depository Trust & Clearing Corporation (DTCC) – through its subsidiaries – provides clearing, settlement, and information services throughout the USA and worldwide.

The DTCC MPLS-based SMART (Securely Managed and Reliable Technology) network platform is the backbone for the entire USA settlement infrastructure. Nevertheless, many of its established and potential participants already have pre-existing connectivity with other global financial services partners.

Joseph Anastasio, IT Director for Network Communications at DTCC, explains: “In increasing our reach and penetration – especially outside the USA – we wanted to avoid imposing extra infrastructure costs on our participants. Many of them were already users of the BT Radianz Managed Infrastructure, and wanted to make better use of those connections. So it made sense for us to talk to BT about alternative business models.”

Solution

The BT Radianz Managed Infrastructure supports the world’s largest secure networked financial community, interconnecting over 15,000 international customer locations. As well as offering virtual point-to-point data, voice, and video circuits between users at those sites and beyond, the BT Radianz infrastructure provides access to applications from over 400 service providers around the world.

The new arrangement required existing links between the BT Radianz Managed Infrastructure and DTCC to be upgraded. Diversely routed, duplicated high-speed circuits have been installed between multiple BT and DTCC data centres – not only to provide the massive bandwidth required, but also to assure the solution’s resilience.

Value

For DTCC, one hundred per cent network resilience is crucial to risk mitigation. BT shares that ethos, with service level agreements assured through redundancy both in its core architecture and at remote customer sites. In addition, DTCC insists that data crossing its network is encrypted end-to-end.

That’s something that the BT Radianz infrastructure does as a matter of course,” says Joseph Anastasio.

Because the BT Radianz Managed Infrastructure is in use by thousands of financial institutions around the world, confidence in its service quality offers reassurance to DTCC clients.

New participants report that connecting via their BT Radianz service is cost effective and secure,” Joseph Anastasio explained. “Moreover, it’s flexible and streamlined, mirroring what we offer our SMART-connected direct participants.”

Since its inception nearly 40 years ago, primary DTCC goals have been to make markets more efficient, mitigate risk, streamline processes, and reduce costs for its customers. It is currently engaged in a top-to-bottom analysis of its business to further improve risk mitigation for its participants.

This reassessment is making us rethink how we protect our customers and the financial markets more effectively. It’s a measure of our mutual trust that we are engaging with BT on such an important project at this particular time,” concludes Joseph Anastasio.

Core BT Services

  • BT Radianz Managed Infrastructure
  • BT around-the-clock service and support

Technical

DTCC SMART network platform

The DTCC MPLS-based SMART (Securely Managed and Reliable Technology) network platform is not only the backbone for the entire USA settlement infrastructure, but also it provides processing and transaction solutions for customers who use a broad range of connections from web-based browsers to mainframes.

Across the DTCC infrastructure, post-trade clearing and settlement information shuttles back and forth between, for example, brokers and financial institutions around the globe. One hundred per cent network resilience is crucial to risk mitigation. BT shares that ethos, with service level agreements assured through redundancy both in its core architecture and at remote customer sites.

BT Radianz Managed Infrastructure

The BT Radianz Managed Infrastructure supports the world’s largest secure networked financial community, interconnecting over 15,000 international customer locations. The unique design and capacity management of the BT Radianz Managed Infrastructure results in low latency access to market data, trade execution, and trade cycle applications and services. It connects to more than 400 of the world’s leading financial content and service providers including the top 10 global stock exchanges, top 50 global broker-dealers, and 48 of the top 50 global asset managers.

BT Radianz services consolidate all of a customer’s external market connectivity onto a single connection ensuring fast, secure, reliable access to trading partners and services throughout the securities trade cycle. BT Radianz connectivity is fully redundant, diversely routed to the customer site, and can carry a 100 per cent service level agreement (SLA).

Connectivity is constantly monitored from end-to-end around the clock, so as market volumes grow or customer requirements change, BT is able to scale each customer’s connectivity quickly and remotely, with no site visit required. BT provides regular reports on performance and service level achievements, and a BT helpdesk offers a 24/7 single point of contact.

New levels of fast and resilient interconnectivity

The DTCC network and the BT Radianz Managed Infrastructure have historically been connected at a nodal level. However, this new venture would require transparent connectivity from a BT Radianz end point straight through to DTCC.

The new arrangement required existing links between the BT Radianz Managed Infrastructure and DTCC to be upgraded. Diversely routed, duplicated high-speed circuits have been installed between multiple BT and DTCC data centres – not only to provide the massive bandwidth required, but also to assure the solution’s resilience.

During the transitional phase, onsite project meetings between BT and DTCC were held pretty much every week.

Resources

Case study

DTCC case study

PDF-583 KB