New York and Amsterdam, 19 April 2012 – EFETnet B.V. and The Depository Trust & Clearing Corporation (DTCC) announced today that, following their successful pilot program launched in January as the first global repository for OTC commodity swaps, they have begun accepting trade submissions from commodity market participants into the new Global Trade Repository for Commodities (GTRfC). DTCC and EFETnet's industry governed low-cost model provides users the ability to submit trades to a single repository in order to fulfill reporting obligations to regulators globally.
Since the US is scheduled for swap data reporting to regulators later this year, submission testing for Dodd-Frank Swap Data Repository (SDR) requirements will begin May 14. This includes real time messages, Primary Economic Terms, Confirm Data and Valuation messages as required by the CFTC rules. At that time, the repository will accommodate single or dual-sided trade submissions, as well as support for Dodd-Frank specific fields.
The repository will offer a full range of commodities swaps, both physical and financial, and will be ready for Dodd-Frank Act reporting prior to October 14, 2012, when all OTC commodity derivatives must be reported to a trade repository if they are subject to the jurisdiction of the US Commodity Futures Trading Commission (CFTC). In addition, the repository is working with market participants and regulators from around the globe to promote a single, central location to which swaps and other trade types can be reported. This will also include a single, central location from which regulators can view information on swaps positions which fall into their individual jurisdictions, thereby easing the reporting burden for all market participants. Regulatory reporting through DTCC's web-based regulatory portal will begin once the repository becomes fully operational in October, and the publishing of public data is expected to follow.
With the guidance of the commodity market participants, the repository functionality is being phased in over time. The first phase allows participants to create positions in the repository with reports of Snapshots, Primary Economic Terms or Confirmation Data. Companies can maintain positions in the repository either by reporting a daily snapshot of all their OTC commodity positions or by reporting changes to their OTC commodity positions. The second phase will focus on enriching the data, meeting Dodd-Frank specific requirements and expanding the product coverage in conjunction with market participants to ensure a full range of commodity coverage. Initial coverage consists of contracts for natural gas, power, oil, agricultural, emissions, financial freight and weather.
"DTCC is delighted to be working with EFETnet to provide a repository for commodities that will support regulatory reporting requirements for this sector," said Stewart Macbeth, President and CEO of DTCC's Deriv/SERV subsidiary. "We have been working for some time with the commodities industry on an implementation plan that both provides improved trade reporting timelines and quality standards and is compliant with existing and upcoming global legislation. The Global Trade Repository for Commodities is the result."
"The launch of the Commodity Derivatives trade repository by DTCC and EFETnet is another important step forward in improving regulatory transparency in the OTC derivatives markets," said Julian Day, Head of Market Infrastructure for the International Swaps and Derivatives Association (ISDA). "Policymakers around the world will have greater insight and access to OTC derivatives trades across the range of interest rate, credit, equity and commodities asset classes."
Trade reporting for the repository will be provided to regulators through DTCC's web-based regulatory portal. Currently, the portal is utilized by more than 38 regulators globally.
DTCC, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC's depository provides custody and asset servicing for almost 3.7 million securities issues from the United States and 121 other countries and territories, valued at US$39.5 trillion. In 2011, DTCC settled nearly US$1.7 quadrillion in securities transactions. DTCC has operating facilities and data centers in multiple locations in the United States and overseas. For more information, please visit www.dtcc.com.
EFETnet was established by the European Federation of Energy Traders (EFET), an organization founded in 1999 by Europe's leading energy companies, and is used for EFET and non-EFET energy trading contracts.
EFETnet B.V. is an independent company, 100% owned by the EFET. It was set up in 2004 by EFET to serve those actively involved in energy trading and is intended to deliver the benefits of electronic data exchange standardization.