The repository maintains the most current credit default swaps (CDS) contract details on the official legal, or “gold” record, for both cleared and non-cleared trades, as well as the single sided, non-legally binding “copper” records for reporting purposes only.

Overview

DTCC's Trade Information Warehouse's global repository for OTC credit derivatives maintains the official legal, or "gold" record for virtually all credit derivatives transactions throughout their multi-year lifecyle. The repository also stores key information on market participants' single-sided, non-legally binding, or "copper", CDS transactions to help regulators and market participants gain a clearer and more complete snapshot of the market's overall risk exposure.

As of December 30, 2009, the repository holds approximately US$29.8 trillion in gross notional value, of which 2.3 million contracts are electronically confirmed with a value of US$25.1 trillion and the remaining US$ 4.7 trillion attributed to copper records and submissions.

DTCC also provides weekly reports on current and historical data on the notional amounts of contracts outstanding and contract turnover on gold records.

Who Can Use the Service

Market participants in the OTC credit derivatives can use the service. To date, all major global derivatives dealers and more than 1700 buy-side firms and other market participants located in 52 countries are linked to the repository.

The Warehouse facilitates procesing for thrid party solution providers such as portfolio compression firms, central counterparties and custodian banks.

Benefits

Ensures accuracy and certainty because the most current position records are maintained in a central database through its lifecycle.

Increases market transparency through public and regulatory reporting and the Warehouse's ability to provide a single-snapshot of market exposure and risk from a central vantage point.

Increases efficiency by streamlining and centralizing the maintenance of contract information for the global marketplace.

Reduces operational risk by serving as the foundation for the Warehouse's Lifecycle Event processing and Central Settlement services, which brings greater automation and operational efficiency to the global market.

How the Service Works

New contracts that have been matched and confirmed, through Markit/SERV or other confirmation services, flow into the Warehouse's repository. A "gold" record represents the current legal state of the contract. A "copper" record is a single-sided, non-legally binding transaction. For gold records, DTCC assigns a unique reference identifier to each contract and performs automated recordkeeping to maintain the "current state" contract terms, taking into account post-trade events. This number provides the starting point for reconciliations as well as other Warehouse services such as Lifecycle Event Processing, which includes payment calculation, bilateral netting, processing of credit events and successor events, and the settlement of these cashflows through the Central Settlement service.

Global regulators are also provided with information on electronically confirmed and more customized CDS contracts, as appropriate and upon request. Because contract details are located in a single central location, the Warehouse provides regulators across the globe with the ability to view market exposure on these contracts and assess risk from a central vantage point, which is critical, particularly in times of crisis.

The repository provides customers with a comprehensive suite of reports that deliver snapshots of all their trades registered in this electronic database. Daily reports are delivered electronically overnight. The service also offers a range of online workflow management and inquiry tools

For More Information

Please contact CAG@markitserv.com.