DTCC is developing its Margin Transit Service (the “Service”) to support financial institutions in addressing significant regulatory, operational and industry challenges related to new rules that will impact the overthe- counter (OTC) derivatives market.
These challenges include inefficient collateral management processes, increasing operations and financings costs, increasing collateral and liquidity demands, heightened risks (including systemic risks) and regulatory pressures. The Service is designed to streamline and automate collateral processing, initially in support of derivatives transactions but ultimately for any marginable product. These efforts are currently in development, subject to regulatory review, approval and oversight and further input from market groups interested in using the Service.
To better understand the industry’s priorities and needs, DTCC engaged in extensive discussions with global industry participants, solution providers and global regulators, including front, middle and back office professionals across different leadership levels. Based on this industry feedback, DTCC identified optimal solutions that would yield significant benefits for the industry.