DTCC Now Supporting the Start of Trade Reporting in Singapore
Singapore Repository and Data Centre to Serve as Hub for Other Jurisdictions in Asia Pacific
Singapore, New York – 6 November 2013 – The Depository Trust & Clearing Corporation (DTCC) today announced that on 1 November 2013 it had received approval from the Monetary Authority of Singapore (MAS) to operate a global trade repository (GTR) that supports reporting of over-the-counter (OTC) derivatives trades under the jurisdiction of MAS. The first bank commenced reporting on 4 November 2013.
The DTCC Data Repository (Singapore) PTE Ltd. (DDRS) is the first entity to receive approval from MAS and is DTCC’s third trade repository licensed globally in addition to licensing in the U.S. and Japan. The Singapore GTR will serve as a hub for supporting regulatory reporting for other jurisdictions in the region including Australia. Five of the major Australian banks active in the OTC derivatives market are now reporting their transactions to DTCC’s Global Trade Repository, under trade reporting rules recently finalised by the Australian Securities and Investments Commission (ASIC).
“The launch of our Singapore GTR reinforces DTCC’s on-going commitment to work with regulators and market participants in Asia and worldwide to reduce systemic risk and improve transparency in the OTC derivatives market,” said Michael Bodson, President and Chief Executive Officer, DTCC. “DTCC commends the MAS for its proactive role in advancing harmonisation of regulations and its collaboration with the industry and supervisors in other jurisdictions to foster stronger market surveillance for this dynamic market.”
DTCC opened its Asia Pacific data center headquartered in Singapore in December 2012 and has since set up operations and client support in Singapore and Japan. The regional expansion plays a key role in helping Asia’s market participants comply with current and future regulatory requirements for OTC derivatives trade reporting. The Singapore-based APAC Trade Repository complements DTCC’s existing European and U.S. Trade Repositories and strengthens DTCC’s global footprint and client service model.
Ong Chong Tee, Deputy Managing Director, MAS, said, “The reporting of OTC derivative trades is an important step in enhancing regulators’ oversight of the OTC derivatives market. We have granted DTCC Singapore a trade repository license. Having a licensed trade repository will increase transparency, improve risk management practices and provide a more robust environment for the trading of OTC derivatives in Singapore.”
Singapore’s trade reporting regime for OTC derivatives commenced on 31 October 2013, starting with the reporting of interest rate and credit derivatives. DTCC has begun on-boarding of MAS-regulated dealers and banks in preparation for mandatory reporting by all banks by 1 April 2013. The International Swaps and Derivatives Association, Inc. (ISDA), on behalf of 20 industry participants, submitted a letter on 5 November to MAS to drive trade reporting of OTC derivatives in Singapore ahead of the mandatory reporting timeline.
“The implementation of the TR in Singapore was very much a 3 way partnership between MAS, the industry and ourselves and the result leverages emerging global OTC reporting best practices.” said Peter Tierney, DDRS CEO and the regional head for DTCC’s trade reporting initiatives in Asia.
About the DTCC GTR
DTCC operates trade repositories across the globe. In the U.S., it supports market participants’ trade reporting for credit, interest rates, equity, FX and commodities derivatives to the CFTC through DTCC Data Repository (DDR), its U.S. swap data repository (SDR). In Japan, DTCC is the only trade repository approved by the Japan Financial Services Agency (JFSA), accepting trades for credit, interest rates, equity and FX derivatives. DTCC also plans to support trade reporting to the Hong Kong Monetary Authority (HKMA), operating as an agent for its clients through this global infrastructure. DTCC’s global trade repository (GTR) has also been prescribed by the Australian Securities and Investments Commission (ASIC) for trade reporting pursuant to the Corporations Amendment (Derivatives Trade Repositories) Regulation 2013.
In the European Union, DTCC is seeking approval from the European Securities and Markets Authority (ESMA) to operate DTCC Derivatives Repository Limited (DDRL), its European trade repository, as a registered trade repository.
In addition, with the Regulatory Oversight Committee’s (ROC) recent endorsement of the DTCC/SWIFT CICI Utility as a globally-accepted pre-Local Operating Unit (LOU), all pre-LEIs issued by the CICI Utility may be submitted to trade repositories in which pre-LEIs are required or accepted including trade repositories registered with ASIC, and in 2014 those registered with the European Securities and Markets Authority and various Canadian provincial regulators.
On a weekly basis, DTCC’s global trade repository receives between 40 and 50 million data submissions and publishes 85,000 real-time messages. Forty-five regulators around the world use DTCC’s bespoke regulatory portal. G-15 dealers, SIFIs (Systemically Important Financial Institutions) and other regional banks already use, or have registered to use, DTCC’s reporting service.
DTCC has operating facilities and data centres around the world and, through its subsidiaries, automates, centralizes, and standardizes the post-trade 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 2012, DTCC’s subsidiaries processed securities transactions valued at approximately US$1.6 quadrillion. Its depository provides custody and asset servicing for securities issues from 131 countries and territories valued at US$37.2 trillion. DTCC’s global trade repositories record more than US$500 trillion in gross notional value of transactions made worldwide. Follow us on Twitter: http://twitter.com/The_DTCC