Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 6

Convergence of Securities Systems, both within countries and across borders, should be encouraged where this eliminates operational risk, reduces cost and enhances market efficiency.

1.	Is the depository linked electronically and in real time with other segments of the core market infrastructure (e.g. trading platforms, netting systems, matching platforms, payment systems)?	DTCC: DTCC is independent from the trading platform and obtains trade input from participants in electronic form (mainframe to mainframe) directly and not from any trading platform. DTCC maintains its own netting system - DTCC owns both NSCC and the mortgage-backed settlement system. In addition, DTCC is a participant of the Federal Reserve book-enty (FRB) system. FED: The FRB (securities) is electronically linked to the FED wire system.
2.	Is there one or more depository or settlement system in the market?	There is more than one depository in the United States. DTCC serves as the depository for corporate debt, mortgage backed securities and equity issues. The FED Book Entry (FRB) system is the recognized depository for US government issues.
3.	If there are several, has a consolidation been considered? If yes, by when?	Although consolidation has been considered, no formal plan for achieving this goal currently exists. DTCC and the FRB system act as the depository for different instruments respectively, DTCC maintains a free-of- payment interface with the Federal Reserve's book-entry system, which enables participants to hold securities positions of US Government securities in their DTCC accounts.
4.	Does (do) the securities system(s) allow other domestic or foreign systems to establish direct links on an equal basis to local members?	DTCC has established links with nine foreign depositories. There is no discrimination between the service offering between these entities and the service provided to local members. The FED does not maintain links with foreign banks.
5.	Does (do) the securities system(s) allow foreign market participants to become direct participants?	DTCC: DTCC allows foreign market participants to become direct members on condition that certain requirements in addition to those for domestic participants, are met. FED: Foreign market participants are not allowed to become direct market participants.