Mitigating Risk, Engaging Industry

A Post-Brexit Plan

By Tony Freeman, DTCC Executive Director, Industry Relations | Sep 26, 2018

A Post-Brexit Plan

What motivations were behind the expansion of DTCC in Dublin?

We are opening a new office in Dublin to continue providing an authorised regulatory reporting service for clients in the EU27, as the UK advances towards a departure from the European Union in March 2019.

Who will benefit from the new offices in Ireland? And what advantages/opportunities will the new office bring?

DTCC’s expansion to Dublin will enable firms within the EU that require derivatives trade reporting services, including banks, brokers, investment managers and corporate firms, to continue using DTCC’s Global Trade Repository (GTR) services regardless of the outcome of the final negotiations between the EU and the UK. DTCC’s GTR will also maintain a presence in the UK, ensuring ongoing compliance with both European Securities and Markets Authority (ESMA) and the Financial Conduct Authority (FCA)’s requirements under the relevant legislation in both jurisdictions.

In addition, DTCC’s Dublin offices will benefit those market infrastructure professionals who wish to work and live in Dublin. We’re currently recruiting for several open positions, such as a systems director and general manager, and are looking to employ the most qualified professionals for the jobs. We’re hoping to engage with local resources as part of this process, including EU nationals that have made Dublin their home.

What services will the office in Dublin offer?

The Dublin-based trade repository will work alongside the DTCC network of seven trade repositories and provide a full level of service to clients in the EU27. This includes a new solution for regulatory reporting required under the Securities Financing Transaction Regulation (SFTR) as of 2020, as well as DTCC’s existing over-the-counter (OTC) derivatives and exchange-traded derivatives (ETD) regulatory reporting solution for both cleared and uncleared contracts.

What will the main challenges be in expanding into Ireland?

Ireland offers an attractive business climate with familiar accounting rules and legal system—in addition to the obvious language and timezone benefits. Additionally, we’ve closely collaborated with IDA Ireland, the national agency responsible for promoting inward investment in Ireland. Having been an approved trade repository in the EU for several years, DTCC knows exactly what this entails, and this will help us deliver a high-quality service.

Is there a plan to open up more offices across Europe eventually?

DTCC already has a European presence with offices located in Brussels, Stockholm, and Frankfurt, in addition to our two UK offices, in London and Wrexham.

Looking to the future, do you think Brexit will provide more opportunities or challenges for the firm?

DTCC will continue to provide its services in both the EU and the UK by maintaining a presence in the UK and establish a trade repository entity in Dublin to ensure full ongoing compliance with ESMA’s requirements under the European Market Infrastructure Regulation legislation.

As a result, DTCC will remain well-positioned to continue supporting clients in the UK and the EU27.

This interview was originally published in Asset Servicing Times.


 

 

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