6 Feb 2025

💰DTC Proposes $3 Billion Senior Notes for Enhanced Liquidity Resources

Self-Regulatory Organizations; The Depository Trust Company; Notice of No Objection to Advance Notice, as Modified by Amendment No. 1, To Raise Prefunded Liquidity Resources Through the Periodic Issuance and Private Placement of Senior Notes

Summary ?

The SEC has approved DTC's advance notice concerning the issuance and private placement of senior notes, aiming to raise up to $3 billion in liquidity resources. This initiative is designed to strengthen DTC’s risk management framework and ensure it meets its settlement obligations, thereby improving overall financial system stability.

Agencies

  • Securities and Exchange Commission

Business Impact ?

$$$ - High

The document outlines DTC's proposed issuance of up to $3 billion in senior notes to enhance liquidity resources, which has direct implications for clearinghouse operations, risk management, and financial stability, impacting businesses engaged with DTC's services.

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