DTCC Connection

Jun 01, 2011 • DTCC Connection

DTCC Is Selected to Operate Interest Rate Derivatives Trade Repository

by Bari Trontz


DTCC has been selected by the International Swaps and Derivatives Association’s (ISDA) Rates Steering Committee (RSC) to work in collaboration with the industry to develop and operate an interest rate trade repository for over-the-counter (OTC) derivatives in this asset class.


“We look forward to introducing this service alongside our OTC credit and equity derivatives repositories to bring greater transparency to the global market,” said Stewart Macbeth, DTCC managing director and general manager, Trade Information Warehouse. “DTCC is committed to partnering with the industry and regulators across the globe to foster stability, integrity and risk mitigation in the market globally.”


Leveraging existing infrastructure

The ISDA RSC, which consists of senior representatives in the interest rate market, issued a public request for proposals (RFP) and selected DTCC as its partner in building the interest rate trade repository.


DTCC’s established infrastructure for OTC credit and equity derivatives reporting will serve as a foundation for the next stage of development of the new repository and will help the industry meet regulatory requirements for trade reporting under the Dodd-Frank provisions in the U.S. DTCC can also tailor functionality to meet requirements under European Market Infrastructure Regulation (EMIR) and other supervisory regulation globally.


DTCC Derivatives Repository

The new interest rate trade repository will be operated by DTCC Derivatives Repository Ltd., a European-based subsidiary, which also operates the Equity Derivatives Reporting Repository (EDRR) for the OTC equity derivatives market. EDRR generates reports that keep market participants and regulators up to date on the industry’s outstanding OTC equity derivatives notional and open positions, as well as other position-related information through a single, secure easy-to-access portal.


DTCC Derivatives Repository Ltd. also houses global credit default swap (CDS) data that mirrors the data registered in DTCC’s New York-based Warehouse Trust Company LLC. This redundancy helps ensure regulators globally have secure and unfettered access to CDS information by establishing identical data sets on two continents. @


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