Tokyo, March 12, 2013 – The Depository Trust & Clearing Corporation (DTCC) announced today that its registration to establish a Japanese over-the-counter (OTC) derivatives trade repository with the Financial Services Agency of Japan (J-FSA) has been approved. DTCC will begin operating this service ahead of the J-FSA’s mandated 1 April deadline for market participants in Japan to begin reporting their OTC derivatives transactions directly to regulators or to a third-party trade repository. Based in Tokyo and operated by the company’s DTCC Data Repository (Japan) KK (DDRJ) subsidiary, this is the first trade repository to be approved and established for the Japanese market.
“DTCC is pleased to be able to deliver to regulatory authorities and market participants in Japan a comprehensive, robust trade repository that brings greater transparency and risk mitigation to the OTC derivatives markets,” said Michael Bodson, Chief Executive Officer, DTCC. “We are committed to working with supervisors to promote a safer environment for OTC derivatives trading as well as helping our clients in Japan and worldwide meet their reporting obligations.”
DDRJ will support trade reporting across four major OTC derivatives asset classes including credit, equities, interest rates, and FX. The service uses the same messaging and software capabilities as DTCC’s currently operating repository services in Europe and the US ensuring consistency in the data accessed by regulators in addition to helping DTCC’s global client base avoid duplicative costs as they comply with reporting requirements in multiple jurisdictions across the globe.
“The launch of a Japanese trade repository is a significant and welcome development for facilitating effective OTC derivatives trade reporting in this market,” said Keiko Fukuda, Executive Director at Morgan Stanley MUFG Securities Co., Ltd. “It is critical that there is in place a strong infrastructure that provides market participants with the ability to submit trades for regulatory supervision in a seamless and cost-efficient manner.”
“Japan continues to grow in prominence as an important component of OTC derivatives trading globally,” said Stewart Macbeth, President and CEO of DTCC’s Deriv/SERV LLC subsidiary. “DTCC is focused on providing regulators and our clients in Japan with the guidance and services they need locally particularly now that reporting requirements are beginning to take hold in this market.”
DTCC’s DDRJ subsidiary is also operating a client support office in Japan to help participants in this market comply with current and future regulatory requirements.
Through multiple operating facilities and data centers around the world, DTCC and its subsidiary companies automate, centralize, and standardize the processing of financial transactions for thousands of institutions worldwide. With 40 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry, simplifying the complexities of clearance, settlement, asset servicing, global data management and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, derivatives, money market instruments, syndicated loans, mutual funds, alternative investment products, and insurance transactions. In 2011, DTCC’s subsidiaries processed securities transactions valued at approximately US$1.7 quadrillion. Its depository provides custody and asset servicing for securities issues from 122 countries and territories valued at US$39.5 trillion. DTCC’s global OTC derivatives trade repositories record more than US$500 trillion in gross notional value of transactions made worldwide across multiple asset classes.
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