December 2, 2013

DTCC Set to Operate Derivatives Depository in Europe

By By John D'Antona Jr.

The Depository Trust & Clearing Corp. announced in early November that the European Securities and Markets Authority has approved the creation of a multi-asset repository in Europe.

Based in London with a data center in the Netherlands, DTCC's European trade repository-Derivatives Repository Limited-will support trade reporting mandated under the recent European Market Infrastructure Regulation, due to go into effect in February 2014. The new facility will promote a unified repository for institutional traders in Europe. Traders already have this clearing and depository setup in the U.S. and Asia. The approval is DTCC's fourth trade repository license globally and adds to the firm's existing multijurisdictional capabilities in derivatives trade reporting. DTCC operates trade repositories in the U.S., Japan and Singapore.

"We are very pleased to have received approval from ESMA. With our proven track record of providing trade reporting services in other markets, we can add real value to the European derivatives reporting space, where we have built a solution tailored for both EMIR reporting firms and European regulatory authorities," said Sandy Broderick, chief executive of DTCC Deriv/SERV.

Reporting for all five derivatives asset classes-credit, interest rate, equity, FX and commodities-will commence simultaneously on Feb. 12, 2014.

"Our focus is now on helping European dealers and end users of derivatives to meet their reporting obligation in time," Broderick said.

The European Market Infrastructure Regulation mandates reporting of both over-the-counter and exchange-traded derivatives to trade repositories; it further places the reporting obligation on both counterparties to the trade, and as such impacts a larger number of entities than regulations implemented in other jurisdictions.

To aid in the process of getting institutions ready for the European launch, DTCC has launched a self-registration portal, which allows users to register in minutes and activate their connection to the repository within 24 hours. Derivatives dealers and end users can connect to DTCC directly or report through a number of intermediaries or middleware providers that are also connected to DTCC's trade repository.

"What we are offering is a flexible and horizontal reporting platform for entities looking to meet their reporting obligations under EMIR," Broderick said.

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