The Depository Trust Clearing Corporation is helping meet the needs of the Commodities Futures Trading Commission requirements for clearing swaps under the Dodd Frank Act.
Virtually all provisionally registered swap execution facilities (SEFs) are now reporting to DDR’s data repository, leveraging the fact that their customers already report their derivatives transactions to DDR.
DTCC Is not a SEF.
By bringing together all the market participants under a single reporting mechanism, DTCC’s DDR provides an efficient and effective reporting mechanism and a single consolidated source of data for regulators, DTCC said.
“DDR is committed to working closely with SEFs in meeting regulatory demands for robust trade reporting in the global over-the-counter (OTC) derivatives market effectively,” said Marisol Collazo, Chief Executive Officer for DDR. “The reporting of SEF-executed credit and interest rate products marks an important step forward in improving operational efficiency, transparency and risk mitigation in the trading of these instruments.”
As part of the wider goals set out by the G-20 and the Financial Stability Board recommendations to improve market transparency, since October 2, SEFs have been required to conform to new CFTC swap data reporting requirements for credit and interest rate products. SEFs, who exercise the option of the CFTC no-action time limited relief, will have extended time to meet their reporting obligation for foreign exchange until October 30 and equities and commodity derivatives until December 2. Users of the DDR trade repository will be able to seamlessly add these to the portfolio of products that they are reporting.
In offering a single, yet flexible platform, DTCC provides the opportunity to meet multi-jurisdictional regulatory reporting obligations, Collazo added. Now DTCC provides live reporting across all five asset classes globally in jurisdictions including Japan and Asia as well as the US.
It anticipates being able to provide a similar service in Europe in early 2014.
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