Next 90 days crucial for the industry’s readiness to meet reporting requirements
London and Paris, 7 November 2013 – The Depository Trust & Clearing Corporation (DTCC) announced today that the European Securities and Markets Authority (ESMA) has approved DTCC’s Derivatives Repository Limited (DDRL) to operate a multi-asset class derivatives repository in Europe.
Located in London, with a data centre in The Netherlands, DTCC’s European trade repository will support trade reporting mandated under the European Market Infrastructure Regulation (EMIR) which is due to begin on 12 February 2014.
The approval is DTCC’s fourth trade repository license globally and adds to the firm’s existing and proven multi-jurisdictional capabilities in derivatives trade reporting. DTCC’s trade repositories have been supporting regulatory reporting in the US since October 2012; in Japan since April 2013; and in Singapore since November 2013. This global reach reflects the industry’s trust and support for DTCC’s global derivatives reporting solution.
"We are very pleased to have received approval from ESMA. With our proven track record of providing trade reporting services in other markets, we can add real value to the European derivatives reporting space where we have built a solution tailored for both EMIR reporting firms and European regulatory authorities,” said Sandy Broderick, CEO, DTCC Deriv/SERV.
"Reporting for all five derivatives asset classes – credit, interest rate, equity, FX and commodities – which will commence simultaneously on 12 February 2014, will be a significant undertaking for the industry and the next 90 days will be crucial for achieving compliance with EMIR. Our focus is now on helping European dealers and end users of derivatives to meet their reporting obligation in time.”
EMIR mandates reporting of both over-the-counter (OTC) and exchange-traded derivatives to trade repositories; it further places the reporting obligation on both counterparties to the trade and as such impacts a larger number of entities than regulations implemented in other jurisdictions.
Véronique Sani, Managing Director, Société Générale, said: “The phased reporting of OTC derivatives trades, both from an asset class and geographical perspective, and our ability to connect to a single trade repository to fulfill all our reporting obligations, has been key to our readiness to meet regulatory obligations seamlessly in the US, Japan and now in Europe.” Christian Zeitsch, Head of Institutional Sales, Bayerische Landesbank, said: “Reporting of OTC derivatives is one of the major aspects of the regulatory overhaul which followed the global financial crisis. Through our connectivity to DTCC, we can meet our reporting obligations in an efficient manner, and respond quickly as new regulatory requirements take effect around the world."
To aid a swift onboading process, DTCC launched a self-registration portal, with an expedited client registration process that can be completed in minutes and connection to the repository activated within 24 hours. Derivatives dealers and end users can connect to DTCC directly or report through a number of intermediaries or middleware providers that are also connected to DTCC’s trade repository.
“What we are offering is a flexible and horizontal reporting platform for entities looking to meet their reporting obligations under EMIR,” concluded Broderick.
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