Earlier this month, The Depository Trust & Clearing Corporation (DTCC) was awarded European Trade Repository of the Year 2015 by Futures & Options World (FOW), the leading news and data service for the international futures and options industry.
The award shows an awareness of DTCC’s work and acknowledges its accomplishments. Since European derivatives reporting mandates were introduced in February 2014, DTCC has led and vigorously participated in efforts to deliver on the mandates, working in close collaboration with clients, regulators and the wider community.
DTCC’s European Trade Repository has become the largest trade repository in Europe, with a significant market share of both the overall volume and value of derivatives contracts. In giving this award, the judging panel recognized the complexity of this initiative as well as GTR’s pivotal role in delivering greater transparency in the global derivatives markets.
Andrew Douglas, CEO of DTCC’s European Trade Repository, notes that significant progress has been made since the introduction of Phase I of the European Markets Infrastructure Regulation (EMIR) reporting mandate. “DTCC has been working with our clients on a collaborative basis rather than simply just engaging them in a transactional relationship. This has enabled us to involve our clients in the early stages of product development, resulting in a number of enhancements, such as a new client portal, which we will launch next year.”
Two subsequent phases of the EMIR mandate shift the emphasis from ensuring that data is being reported to trade repositories, to ensuring the completeness and quality of that data. In both cases, DTCC’s European clients experienced a smooth implementation of the process, despite the size of transactions reported. More than 170 millions messages were processed by the European Trade Repository in one week at the beginning of November.
“DTCC engaged with clients to ensure they understood what data validation rules meant for them and we shared our future plans with them,” Douglas said. “We created an environment whereby around 500 clients tested their systems ahead of the deadline.”
DTCC has also sought to collaborate with the wider industry to ensure it is offering complimentary services to its clients. As a case in point, DTCC is working with the London Stock Exchange Group to provide DTCC GTR clients with a reporting solution for Markets in Financial Instruments Regulation (MiFIR), ensuring that clients can meet both EMIR and MiFIR reporting requirements through a single infrastructure.
“This is part of a big focus on reducing the cost of compliance for our clients, avoiding unnecessary duplication and simplifying the costs of meeting different reporting mandates,” Douglas said.