Press Release

Mar 24, 2015 • Press Releases

DTCC Encourages Action Ahead of Next Phase of OTC Derivatives Reporting Requirements in Australia

Appoints New Business Manager in Sydney to support client growth

Sydney/Hong Kong/Singapore – 25 March 2015 – The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, is encouraging institutions to act ahead of the third phase of derivatives reporting requirements to be implemented by Australian Securities & Investments Commission (ASIC) next month.

DTCC’s Global Trade Repository (GTR) service, operating as the DTCC Data Repository (Singapore) Pte Ltd, is the only holder of an Australian Trade Repository Licence, according to Peter Tierney, Regional Head of DTCC’s GTR business for Asia-Pacific. Today, 18 of Australia’s leading financial market participants are already using the service for ASIC-reportable open OTC positions across 5 asset classes, with a total gross notional of AUD24.6 trillion. [1]

Beginning April 13, 2015, institutions with gross notional outstanding in reportable over-the-counter (OTC) positions between A$5bn and A$50bn (“3A” entities) are required to report trades to the DTCC trade repository. On October 12, 2015, this requirement will be extended to entities holding less than A$5bn (“3B” entities) as well as apply to additional asset classes, including equity, FX and commodities.

“A rigorous process underpins trade repository on-boarding, so we encourage any institutions who may qualify as 3A to opt in to the GTR service immediately,” Mr. Tierney said. “We similarly urge 3B entities to act well ahead of their respective October deadline.”

Mr. Tierney added that DTCC infrastructure and support is firmly in place to help with the next phases of derivatives reform, including the Sydney appointment of Oliver Williams as DTCC’s GTR Business Manager. Mr. Williams will oversee GTR on-boarding and regulatory collaboration.

“Oliver brings over 15 years of financial services experience and a deep knowledge of pre- and post-trade market segments across all asset classes to his new role at DTCC. He is well positioned to manage the initiative in Australia while helping to drive data quality and programs that lead to meaningful visibility into derivatives transactions, a key G20 objective.”

In addition to working with regulators around the next phases of trade reporting mandates, DTCC has partnered closely with market participants and industry bodies in Australia to encourage early opt-in to the trade repository to prevent risk of non-compliance.

“The majority of institutions are prepared for reporting requirements. We do expect a smooth transition to phase three, however it is important that first-time reporters allow maximum time for trade repository on-boarding, connectivity and testing,” he said.

Mr. Tierney added that in addition to greater visibility of OTC derivatives achieved by regulators, the Straight-Through Processing (STP) flow of data from confirmation platforms to the trade repository should enhance the quality of data.

“A positive consequence of trade reporting rules is that data quality is improved upstream, leaving the reporting element as a natural extension of an efficient post trade workflow.”  

About DTCC GTR

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).

DTCC’s global trade repository maintains over 40 million open OTC positions and processes 280 million messages a week. Over forty regulators use DTCC’s bespoke regulatory portal. G-15 dealers, SIFIs (Systemically Important Financial Institutions) as well as local and regional banks already use DTCC’s reporting service for all derivatives asset classes around the world.

About DTCC

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.

To learn more, please visit www.dtcc.com or follow us on Twitter @The_DTCC.

 

 

[1] ASIC public data - http://www.dtcc.com/repository-otc-data/asic-reports.aspx

Contacts

Kristi Bartlett

Email

kristi.bartlett@omgeo.com

Phone

+1 617 880 6770

Emma Cullen-Ward, OneProfile
+61 2 8915 9900
emma@oneprofile.com.au

Sherman Ko, Ryan Financial
+852 6101 0487
sherman@ryancommunication.com

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