Sydney, AU/Singapore/Hong Kong/New York, NY – April 29, 2014 – The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, extended its Global Trade Repository (GTR) service to enable a broader range of market participants to meet new Phase 2 reporting requirements for over-the-counter (OTC) derivatives transactions, as mandated by the Australian Securities & Investments Commission (ASIC). Ten of Australia’s leading broker/dealers have signed on to leverage the service.
Under rules established by ASIC in July 2013, certain financial institutions were required to begin reporting their trading activity to a trade repository as of April 1, 2014 (Phase 2). These rules apply to Australian Authorised Deposit-taking Institutions (ADIs), Foreign ADIs, Australian Financial Services (AFS) licensees, Clearing and Settlement (CS) facility licensees and exempt foreign licensees, in each case with total gross notional outstanding positions of Australian $50 billion or more as of December 31, 2013.
“The April 1 deadline marks an important step in creating greater transparency and risk mitigation in the OTC derivatives market in Australia and globally,” said Peter Tierney, Regional Head of Asia-Pacific at DTCC. “DTCC will continue to engage market participants in Australia and ASIC to advance an effective and comprehensive derivatives reporting structure.”
“Trade repositories bring heightened transparency to the derivatives market,” said Laurence White, Senior Manager, OTC Derivatives Reform at ASIC, “affording regulators the potential to assess risk exposures in the market in a more effective and comprehensive manner.”
DTCC’s Global Trade Repository (GTR), which operates through regulated entities located in several countries, is the only repository in the world that supports regulatory reporting in the Asia-Pacific region for all five major OTC derivatives asset classes, including credit, interest rates, equities, FX and commodities. The GTR also supports reporting regimes in the U.S. for the Commodity Futures Trading Commission (CFTC), in Europe for the European Securities and Markets Authority (ESMA), in Japan for the Financial Services Agency of Japan (JFSA) and in Singapore for the Monetary Authority of Singapore (MAS).
“By reducing risk and providing greater clarity, trade repositories play a critical role in the OTC derivatives marketplace,” said Brendan Byrne from Suncorp Bank’s OTC Reform Team. “Engaging with DTCC not only allows Suncorp to meet mandates in Australia and globally, it also provides an effective and efficient tool for our regulators to assess risk exposures in the market place.”
Phase 1 of Australia’s trade reporting regime for OTC derivatives commenced in October 2013 with Australian financial institutions registered as swap dealers with the CFTC required to begin reporting their OTC derivative transactions.
The next reporting deadline is October 1, 2014 (Phase 3), where remaining reporting entities that were not required to report in Phase 1 or Phase 2 will start reporting interest rate and credit derivatives, with other derivatives starting to be reported 6 months later.
With over 40 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry. From operating facilities, data centers and offices in 15 countries, DTCC, through its subsidiaries, automates, centralizes, and standardizes the post-trade processing of financial transactions, mitigating risk, increasing transparency and driving efficiency for thousands of broker/dealers, custodian banks and asset managers worldwide. User owned and industry governed, the firm simplifies the complexities of clearing, settlement, asset servicing, data management and information services across asset classes, bringing increased security and soundness to the financial markets. In 2013, DTCC’s subsidiaries processed securities transactions valued at approximately US$1.6 quadrillion. Its depository provides custody and asset servicing for securities issues from 139 countries and territories valued at US$43 trillion. DTCC’s global trade repository processes tens of millions of submissions per week.
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