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Full Version: Biggest most powerful companies
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When we think biggest powerful companies maybe we think those often in the news like IBM Pratt and Whitney GE Berkshire P&G Microsoft or maybe Apple comes to mind.

You probably never heard of this unknown private company called dtcc

also everything you thought you knew about how much money there is out there in the world markets you're probably wrong as well and so was I.

check this out.
Come on, its revenue is just 1.2B. It doesn't even qualified to join fortune 500. The transaction value has very little meaning. Every year SGX as just a small player in global market has few hundred billion transaction value for share market alone. Any FX trading trainer will tell you that worldwide FX transaction everyday is at least a few trillion dollars. This company involves in many different financial transaction, so the number is bigger, but it seems like its income is rather low compare with the number of transaction.
Glencore is rather huge.
To generate revenue a lot of company business have real assets factory mine plantation and invest in capex etc ...

this is a rubber stamp company like sgx they just chop chop chop earn money by being in the right place right time but unlike sgx they do it in mind boggling insane volume. You all know what is quadrillion or not? if they have to print a quadrillion dollars I think they will run out of trees to kill. I get slight nauseas even thinking about it.

but there's a lot of conspiracy th behind this company. they just increase their fees a tiny little bit it will have a very big impact on their earnings already.
DTC is a clearing house and depository mainly for US or US linked securities. I think after GFC they are clearing more derivatives through clearing houses so government can keep track of the notional amounts and control counterparty risk, rather than OTC in the past.

The big big figures are notional values.
I doubt that the company is so great as you imaging from those big numbers.

Their asset is 26 b, generated only 1.2 b revenue. Even if profit margin is 100%, the return on asset is just 5%. If they can easily make money by stamping on paper, I don't know the reason they maintain such a big asset for such a small business (revenue). Normally financial services companies are asset light. SGX ROA maybe 10 times more than it.
Sorry if I sound sgd but I dont think you understand the problem here, you were just impressed by big numbers thats all. Bank of new york mellon does custody work for trillions too. Nothing fancy about that.

And FYI, a clearing house guarantees the transactions. The co has single digit billion assets guaranteeing trillions in notional transactions. I hope you know where this is heading. Several parties that does not pay, you are on the hook. Few % is of non payment (which is not unheard of) and the biz will go.