DTCC plays a critical role in protecting the integrity and stability of the global financial system. The firm stands at the center of the global marketplace, and in its role as the holding company for Systemically Important Financial Market Utilities (SIFMUs) in the United States, its services are deemed essential for the safe and efficient functioning of the marketplace. Historically, DTCC’s core platforms and systems have been hosted in private data centers owned and operated by the firm – an approach that was consistent with many of its peers in the industry. However, as DTCC has been executing its IT Strategy to modernize its core platforms, it has also incrementally expanded its solutions delivery capability to externally-hosted platforms, including the use of public cloud vendors. A similar shift has been occurring across the industry as many financial institutions, including financial market utilities (FMUs), governmental agencies and regulators, have begun to leverage the public cloud. This change reflects both the ongoing maturation of cloud computing as well as a growing understanding and appreciation for the enormous security and operational benefits the cloud can provide.
Cloud computing has reached the tipping point as the capabilities, resiliency and security of services provided by cloud vendors now exceed those of many on-premises data centers. The combination of technology commoditization with the scale and competition from public cloud vendors is driving the unit price of computing, storage and network services toward zero. This gap will continue to grow at an accelerated rate, leaving laggards in cloud adoption at increased risk from a resiliency and cost perspective. The question of the past 10 years has been, “is it safe to move processing to the cloud?” Today, that question has become: “What compromises are market infrastructures making by maintaining processing in on-premises data centers?”
As a result, DTCC intends to strategically expand the leverage of cloud technology across a much greater range of its services and applications over the next 3-5 years. Due to the critical nature of the services provided by DTCC, we will execute our cloud strategy in collaboration with key stakeholders, including clients and supervisors.
DTCC recognizes that understanding and market acceptance of significant technology changes requires industry wide communication and open discussion. This paper provides DTCC’s views on the benefits of the public cloud platform and discusses the relevant regulatory guidance and requirements to utilize cloud vendors and the related policy implications.


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