Mitigating Risk, Engaging Industry, Advancing Innovation

DTCC’s Liquidity Coverage Ratio Data Service Chosen as Top Compliance Solution

By Matthew Bergerman, DTCC Director, DTCC Data Services | Jun 22, 2018

Turning User Feedback Into Improved Market Insights

I was honored to recently accept the award for 'Best Compliance Solution’ at the FTF News Technology Innovation Awards 2018 in New York in recognition of our Liquidity Coverage Ratio (LCR) Data service.

We’re incredibly grateful that our clients have chosen LCR as the ‘Best Compliance Solution’ because we’ve worked hard to provide an offering that allows firms to simplify regulatory compliance while optimizing their liquidity requirements. The annual FTF News Awards recognizes the professionals, financial technology vendors, service providers, industry bodies and regulators that have made noteworthy achievements in operational excellence during the preceding year so, our achievement in this areas is especially gratifying.

Our team is keenly focused on looking for innovative ways to help the industry meet its data needs. In fact, LCR gives firms a powerful tool for regulatory compliance by computing customized liquidity ratios for a subscriber’s daily commercial paper (CP) portfolio. The service is a fast and cost-efficient way for firms to enhance visibility into the obligations for the CP for which they provide loan commitments.

What’s unique about our solution is that the CP market activity settled through DTCC’s depository subsidiary, Depository Trust Company (DTC), gives LCR access to aggregate industry data with outstanding depth and breadth. Each business day, CP issuers and paying agents send to DTC data on approximately $100 billion in new issuances and maturities; more than $1 trillion in CP is on deposit at DTC. The service utilizes the DTC-sourced data on new CP issuances and maturities in conjunction with a subscriber’s CP portfolio data to calculate and provide overnight delivery of customized information that can help firms optimize their current liquidity requirement.

Additionally, the service’s coverage-ratio updates can allow firms to remove excess collateral from their balance sheets and redeploy capital for other business needs. Its data transparency also simplifies firms’ compliance with Basel III and similar regulatory mandates.

LCR is part of DTCC’s Data Services suite of offerings that provide referential and activity-based data, delivered in fixed or configurable formats, sourced from DTCC’s transaction, reference, position and asset servicing data covering all major asset classes. DTCC Data Services solutions help firms address an array of business and regulatory needs including risk management, regulatory reporting, capital adequacy, liquidity and market transparency.

To learn more about DTCC’s Liquidity Coverage Ratio Data service click here.


 

 

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