Depository Trust Corporation (DTC) Law and Legal Definition

Depository Trust Corporation or DTC is a principal central clearing agency for securities transactions on the public markets. It acts like a clearinghouse to settle trades in corporate and municipal securities. It is the central depository for securities certificates through which member firms can transfer securities electronically through computerized bookkeeping entries. It is a member of the Federal Reserve system, registered with the Securities and Exchange Commission (SEC) and owned by the Depository Trust and Clearing Corporation (DTCC).