Hon. Patrick McHenry
Ranking Member
Committee on Financial Services
U.S. House of Representatives
Washington, D.C. 20515

Dear Ranking Member McHenry,

The Depository Trust & Clearing Corporation (“DTCC”) welcomes your invitation to submit this statement to the House Financial Services Committee in connection with its February 18, 2021 hearing entitled “Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide.” DTCC is a holding company that owns and operates three clearing agencies that are registered with the U.S. Securities and Exchange Commission (“SEC”) under the Securities Exchange Act of 1934 (the “Exchange Act”): National Securities Clearing Corporation (“NSCC”), Fixed Income Clearing Corporation (“FICC”) and The Depository Trust Company (“DTC”). The events at issue in this hearing relate to securities transactions cleared by NSCC.

DTCC’s direct clearing members are responsible for completing their customers’ trades at NSCC. NSCC’s rules outline clear financial and operational risk management obligations that apply to direct clearing members.1 NSCC’s requirements for clearing members, and the impact of those requirements during the high-volatility period of late January 2021, are discussed below.

Download the Congressional statement to the House Financial Services Committee in connection with its February 18, 2021 hearing entitled “Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide.”

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