DTCC/CDS explore collaboration; rule out merger

DTCC/CDS explore collaboration; rule out merger

The Depository Trust & Clearing Corporation (DTCC) in the US and The Canadian Depository for Securities Limited (CDS) are to undertake a feasibility study exploring opportunities for cross-border collaboration.

The study, to be completed over the next four to six months, will focus on areas such as risk management, transaction services, information-based services, technology platforms and business continuity planning.

The two clearing entitities stress that the co-operation is not a precursor to a merger or an acquisition.

"We do believe, however, that taking a fresh look at partnering our shared experience and expertise can gain advantages for both companies," say the depositories in a statement.

CDS is the only clearing and settlement organisation with a full cross-border link into the US, encompassing central counterparty clearing and delivery-versus-payment settlement and asset servicing.

The feasibility study will determine if there is a sufficient business case to support further collaboration, including shared services and knowledge transfer.

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