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DTCC Pilot Tests OTC Equity Derivatives Reporting Repository

DTCC now operates two of the industry’s global over-the-counter (OTC) derivatives registries: for credit default swaps (CDS) and for equity derivatives. These entities are similar but different.

The CDS Trade Information Warehouse offers trade capture and reporting, as well as post-trade processing services, including central settlement, payment netting and calculation and credit event processing. Initially, the Equity Derivatives Reporting Repository (EDRR) will offer only trade capture and reporting services.

The CDS Warehouse operates through DTCC’s Warehouse Trust Company LLC subsidiary, which holds transaction details for virtually all CDS contracts worldwide. The Warehouse Trust provides the full suite of repository and lifecycle event processing services. The Trade Information Warehouse, launched in 2006, now has more than 1,700 customers located in nearly 60 countries.

The contract to create the EDRR was won through a collaboration of DTCC and MarkitSERV, which put together the most competitive bid to the RFP (request for proposals) issued by an OTC equity derivatives industry steering committee composed of key buy- and sellside market participants and governed by the International Swaps and Derivatives Association (ISDA®). DTCC was selected in October 2009 to build and operate this repository, which is scheduled to launch in July 2010.