Securities and Securities Intermediaries: How Secure are Intermediated Holdings?

As a result of increased trading volume dating back to the 1960’s, when paperwork backlogs temporarily derailed Wall Street, as well as the growth in technology, the securities trading industry has come to rely heavily on a system of indirect ownership of securities. Most investors now hold their securities through bank or brokerage accounts, and those banks or brokers will likely, in turn, hold those securities through a central securities depository, such as The Depository Trust Company (DTC).