Cloud computing will now form the centre of several operations at a global firm dedicated to post-trade market infrastructure for asset managers, custodians and brokers.
The Depository Trust and Clearing Corporation (DTCC) holds a view that cloud computing has reached a tipping point where its capabilities and cost efficiencies exceed those achieved by in-house data centres.
DTCC has used cloud services for about five years and is now expanding the technology throughout several external service and applications. It will "reduce risk and cost and improve the resiliency and security of DTCC's systems."
In its latest white paper on cloud computing, DTCC said the cost and value of cloud computing technologies is challenging long-standing justifications for provisioning or sustaining individually owned and managed data centres.
The white paper highlights that cloud operations have become so robust and sophisticated that many of the biggest companies cannot achieve the scale of some of the large cloud vendors with respect to performance, security, cost and scale.
DTCC noted, however, that moving applications originally developed within a corporate data centre to the cloud, a model known as "lift and shift," will not immediately deliver benefits.
"It is possible that migrating to the cloud could introduce additional complexity. Therefore, cloud strategies must carefully examine each application to ensure that the intended benefits are achievable," DTCC said.
DTCC chief information officer Robert Garrison said: "Cloud computing has moved past a tipping point and that the security, scalability, resiliency, recoverability and cost of applications in the cloud are better than many private enterprises could achieve on their own."
"As a result, we will pursue a strategy of building a cloud ecosystem that supports best practices and standards. At the same time, we take seriously our responsibility to be in full compliance with all relevant regulatory requirements and pledge to work in collaboration with our supervisors to achieve this," he said.
"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 aims to simplify the complexities of clearing, settlement, asset servicing, data management and information services across asset classes, bringing increased security and soundness to financial markets. In 2016, DTCC's subsidiaries processed securities transactions valued at more than US$1.5 quadrillion.