Move Will Promote OTC Derivatives Reporting And Ensure Seamless Access To Data For Regulators Worldwide
New York, December 19, 2012 and Singapore December 20, 2012 – The Depository Trust & Clearing Corporation (DTCC) today announced the opening of its Asia Pacific global data site headquartered in Singapore. The Singapore location is part of the global trio infrastructure designed to support DTCC’s Global Trade Repository services. The other two locations operate from the U.S. and Netherlands.
This milestone expansion into the Asian market highlights DTCC’s commitment to worldwide systemic risk mitigation and enhanced market surveillance in the over-the-counter (OTC) derivatives market.
In addition to establishing the Asia Pacific global data center, DTCC has setup operations and client support in Singapore and Japan. This staff will play a key role in helping the region’s market participants comply with current and future regulatory requirements for OTC derivatives trade reporting. These offices will also provide client support and operational processing in the region.
“By establishing a global data center in Asia, DTCC is working to ensure the regions’ regulators have the ability to gain seamless and timely access to the transaction data relevant to their areas of jurisdiction,” said Michael Bodson, President and Chief Executive Officer, DTCC. “Our new Singapore facility is part of the company’s global network of operations established to provide robust, 24/7 OTC derivatives trade reporting and processing services to regulators and market participants around the world.”
DTCC also announced that it is applying for a trade repository license with the Monetary Authority of Singapore (MAS) to establish a Singapore-based global OTC derivatives trade repository to support trade reporting in Singapore’s financial markets. The MAS has also made reference to establishing an appropriate regulatory college to ensure effective oversight and data sharing capabilities in the region for the purpose of meeting G20 commitments in terms of trade reporting.
Elsewhere in Asia, DTCC will support trade reporting to the Hong Kong Monetary Authority operating as an agent for its customers through this global infrastructure. DTCC is also working to be designated by the JFSA to operate as a trade repository.
“The opening of our office and Asia data center in Singapore demonstrates DTCC’s commitment to bringing more transparency and risk mitigation to the global OTC derivatives market,” said Bodson. “We continually strive to provide the financial system with an infrastructure that improves functionality and risk controls for all involved.”
Working with OTC derivatives market participants globally, DTCC launched the world’s first global trade repository in 2006 through its then unregulated DTCC Deriv/SERV Trade Information Warehouse. By maintaining a central location for capturing transaction data in the OTC derivatives market, DTCC’s trade repository was instrumental during the 2008 financial crisis in bringing much needed clarity to the global market’s credit default swaps risk exposure resulting from the Lehman Brothers Inc. bankruptcy. The service also played an important role in bringing similar perspective during such events as the Eurozone and the Greek debt crisis.
DTCC’s subsidiary, DTCC Data Repository (U.S.) LLC (DDR) was granted provisional registration by the US Commodities and Futures Trading Commission to operate a U.S. swaps SDR across all over-the-counter derivatives asset classes. In Europe, DTCC also operates its Global Trade Repository service though its London based DTCC Derivatives Repository LTD and a data center in Amsterdam.
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 almost 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 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. For more information, visit www.dtcc.com.
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