DEFINITION of Banking And Securities Industry Committee (BASIC)
A committee established in 1970 to standardize, automate, and streamline stock certificate and options processing. The Banking and Securities Industry Committee (BASIC) sought to uphold uniform rules and regulations regarding the trading and settlement of securities.
The National Association of Securities Dealers, the New York Clearing House banks, and major stock exchanges collaborated to form BASIC to resolve the paperwork crisis in the securities industry resulting from the bull market of the late 1960s.
Essentially, BASIC attempted to reduce the physical exchange of stock certificates when transferring ownership. Its efforts culminated in the creation of the Depository Trust Company.