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DTC Operational Changes Following Hurricane Sandy
Practical Law Legal Update 4-522-2659 (Approx. 3 pages)
DTC Operational Changes Following Hurricane Sandy
by PLC Corporate & Securities
| Published on 05 Nov 2012 • USA (National/Federal) |
The Depository Trust Company has instituted certain changes to its operations following the loss of power and flooding at its lower Manhattan headquarters.
As a result of the flooding and loss of power to its lower Manhattan headquarters caused by hurricane Sandy, the Depository Trust Company has issued a series of notices detailing operational changes. These releases include:
- An October 30, 2012 notice describing the flooding and loss of power and the status of the DTC's operations during the recovery process. The notice assures participants that clearing and settlement have been shifted to alternate data and operations centers and provides contact information for the DTC's Tampa, Florida, office that is serving as a point of contact while lower Manhattan operations are disrupted.
- A November 1, 2012 notice reporting more information on damage to the lower Manhattan headquarters and stating that certain courier and mail shipments that previously would have been directed there should be sent to the DTC's Brooklyn location. The notice provides the mailing address of that location. It also discusses the status of deliveries sent to the lower Manhattan headquarters just before the hurricane.
- A November 2, 2012 notice announcing that the DTC has reestablished certain operations, such as Direct Registration System statement withdrawals, at the Brooklyn location, and that delivery of certain physical certificates can now be made to the Brooklyn location.
Practitioners working on closings during the weeks of October 29th and November 5th have informally reported that they have successfully worked with the DTC to agree on changes to standard procedures to complete their closings.
For more information on clearing and settlement, see Practice Notes, Securities Transfers and Proxy Voting and Clearing and Settlement of Debt Securities: Overview.
UPDATE: On November 7, 2012, the DTC issued a press release detailing its operations in the days following the hurricane. The release indicates, among other things, that the DTC has met all critical clearance and settlement deadlines despite the headquarters flooding and loss of power.