Major Dealers Now Reporting Trades for Five Major OTC Derivatives Asset Classes to DTCC’s Swaps Data Repository

First and only data repository to offer reporting for all five OTC derivatives asset classes

NEW YORK--(BUSINESS WIRE)--The Depository Trust & Clearing Corporation (DTCC) announced today that registered swaps dealers are now submitting over-the-counter (OTC) derivatives trade information for all five major asset classes into the DTCC Data Repository (DDR), its US swaps data repository (SDR). The DDR is the only swap data repository to offer reporting across all asset classes, a major milestone in meeting regulatory calls for robust trade reporting and risk mitigation in the global OTC derivatives market. Currently, there are about three million new positions across asset classes for a total of nearly seven million positions registered in the SDR.

“Reporting across classes will, for the first time, provide supervisory authorities with the necessary information to monitor derivatives exposure and identify risk concentration in a timely fashion while also achieving greater public transparency in the OTC derivatives marketplace”

“Reporting across classes will, for the first time, provide supervisory authorities with the necessary information to monitor derivatives exposure and identify risk concentration in a timely fashion while also achieving greater public transparency in the OTC derivatives marketplace,” said Michael Dunn, Chairman of the DDR. “The industry will also benefit from a centralized reporting platform for all their derivatives activity, improving their operational efficiency and risk management.”

As outlined by the Dodd Frank Act (DFA) and the Commodity Futures Trading Commission’s (CFTC) real-time and regulatory reporting rules, swap dealers initially began reporting credit and interest rate derivatives into the DDR on December 31, 2012. Registered swap dealers have now also begun mandatory reporting of their OTC derivatives trades for equity, FX and commodity derivatives as of February 28, 2013. All other market participants that are required to report their transaction will begin their mandatory reporting on April 12, 2013

"After what has been a major effort by the FX industry in partnership with DTCC, the successful launch of the FX Trade Repository is an excellent step forward. As the reporting deadlines in other regions of the world approach, the industry will continue its work to ensure seamless, efficient and effective reporting of FX transactions, which will lead to greater transparency of the global FX marketplace" said James Kemp, managing director of the global FX division of the Global Financial Markets Association.

Given our role as a global financial market infrastructure, DTCC is committed to supporting regulatory and industry efforts such as the 2009 G20 Commitments on the regulation of OTC derivatives markets and other global regulatory mandates aimed at reducing systemic risk in the trading of these instruments,” added Dunn.

The US compliance deadline is the first in a series of reporting requirements timelines globally facing swap dealers, major swap participants and non-financial counterparties across the world. In Europe, DTCC already has an existing trade repository regulated by the UKFSA, DTCC Derivatives Repository Ltd (“DDRL”). DTCC is planning to register this entity with ESMA ahead of the mandatory reporting deadline. Reporting will start for credit and interest rates swaps in August 2013. The DTCC trade repository in Japan is also undergoing testing ahead of the local compliance date of April 1, 2013 and registration is expected shortly. Australia, Singapore and Hong Kong also have legislation in place and are going through the rule-making process. DTCC also intends to support reporting in these markets either by acting as agent (in Hong Kong) or by registering its trade repository (in Singapore and Australia).

DTCC provides critical infrastructure to serve all participants in the financial industry, including investors, commercial end-users, broker-dealers, banks, insurance carriers, and mutual funds. DTCC operates as a cooperative that is owned collectively by its users and governed by a diverse Board of Directors. DTCC’s governance structure includes 344 user shareholders.

About DTCC

Through multiple operating facilities and data centers around the world, DTCC and its subsidiary companies automate, centralize, and standardize the processing of financial transactions for thousands of institutions worldwide. With 40 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry, simplifying the complexities of clearance, settlement, asset servicing, global data management and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, derivatives, money market instruments, syndicated loans, mutual funds, alternative investment products, and insurance transactions. In 2011, DTCC’s subsidiaries processed securities transactions valued at approximately US$1.7 quadrillion. Its depository provides custody and asset servicing for securities issues from 122 countries and territories valued at US$39.5 trillion. DTCC’s global OTC derivatives trade repositories record more than US$500 trillion in gross notional value of transactions made worldwide across multiple asset classes.

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