The over-the-counter (OTC) derivatives markets are undergoing an unprecedented regulatory overhaul that is dramatically changing the landscape of financial services. New regulations, along with the ongoing global economic slowdown and the need for firms to make significant investments to strengthen their risk management, have put extreme pressure on balance sheets across the industry.
The key to addressing many of these challenges lies, in part, in leveraging the financial infrastructure to help firms meet their regulatory obligations in the most efficient manner possible while also minimising costs, mitigating risks and enhancing market transparency. The Depository Trust and Clearing Corporation’s (DTCC) global trade repository (GTR), for example, was created in 2006 to provide asset servicing of credit default swaps contracts but has been leveraged in recent years to also bring an unprecedented degree of transparency to this market.
Download the Congressional Testimony: The many sides of trade repositories