Industry Foundations Quiz

What does SIFMU stand for?

• Systemically Important Financial Market Utilities

• Standardized Integrated Financial Market Utilities

• Structured Important Financial Market Utilities

• System Import Finance Market Utilities

Answer explanation

Systemically important financial market utilities (SIFMUs)...

are entities whose failure or disruption could threaten the stability of the United States financial system.

To date eight entities in the U.S. have been officially designated SIFMUs.

How many among the 8 SIFMUs are owned by DTCC?

• 2

• 3

• 4

• 5

Answer explanation

3 out of the 8 SIFMUs are owned by or are subsidiaries of DTCC namely...

DTC

NSCC

FICC

What was formed first DTC or DTCC?

• DTC

• DTCC

Answer explanation

DTC was formed in in 1973 in response to the paperwork crisis.

DTC is an industry-owned and governed utility whose main purpose was to put a stop to the movement of paper.

DTCC was formed as a result of the merger of what two SIFMUs?

• DTC and FICC

• DTC and NSCC

Answer explanation

In 1999,

the operations of DTC and NSCC were combined to enable US equity clearance and settlement to take place in a single industry-owned and governed entity hence giving birth to DTCC.

This integration leveraged the best of both companies by reducing redundancies in both organizations

The 3 SIFMUs legally assume a central counterparty role in order to reduce risks for the entire industry.

• True

• False

Which among the 3 SIFMUs was created in 2003 by integrating the Government Securities Clearing Corporation and the Mortgage-Backed Securities Clearing Corporation?

• DTC

• NSCC

• FICC

Bonus Question!

Who among these are both members of the Manila Ignite Leadership Team?

• Allan and Louie

• Icon and Ferleen

• Daisy and Patricia

• Sheila and Leo

What was formed first DTC or DTCC?

• DTC

• DTCC

Answer explanation

DTC was formed in in 1973 in response to the paperwork crisis.

DTC is an industry-owned and governed utility whose main purpose was to put a stop to the movement of paper.