DTCC & AWS: Core Systems Moving to Cloud by 2030

DTCC and AWS Announce Core System Migration by 2030

The Depository Trust & Clearing Corp. (DTCC), the primary clearinghouse for US stock trades, is collaborating with Amazon Web Services (AWS) to move its core clearing, settlement, and risk-management systems to the cloud. This strategic migration is scheduled for completion by the end of the decade.

Regulatory Approval and Industry Context

This initiative follows a "no-objection" letter from the Securities and Exchange Commission (SEC) issued last year, permitting DTCC to host these critical systems on a public cloud. The move aligns with a broader financial industry trend, as other major entities like CME Group are also transitioning key infrastructure to the cloud to improve performance and scalability.

Strategic Impact on Market Infrastructure

According to DTCC's Chief Information Officer, Lynn Bishop, the primary drivers for the migration are enhanced resiliency and the flexibility to design infrastructure for future market needs. This modernization will support other key projects, such as the planned expansion of clearing hours. The firm also continues its partnership with Microsoft for its digital asset operations.

Conclusion: A Foundational Shift for US Markets

DTCC's migration to AWS marks a significant technological overhaul for critical US financial infrastructure. The transition is expected to deliver enhanced efficiency and capacity, positioning the markets to handle future growth and complexity. Stakeholders will monitor the phased implementation over the coming years.

FAQ

Q: Which DTCC systems are moving to the cloud?
A: The core systems for clearing, settlement, and risk management will be migrated to Amazon Web Services.

Q: What is the timeline for this cloud migration?
A: The project is planned to be completed by the year 2030.

Source: Investing.com