DTCC Launches Equity Derivatives Reporting Repository

The Depository Trust & Clearing Corporation (DTCC) has launched its Equity Derivatives Reporting Repository (EDRR). In other news, the UK Financial Services Authority (FSA) has approved the DTCC Derivatives Repository subsidiary.

The building of the EDRR repository follows a competitive request for proposal process (RFP) led by the International Swaps and Derivatives Association (ISDA) last year, and represents the industry’s efforts to strengthen its operational infrastructure and improve transparency across all major over-the-counter (OTC) derivatives asset classes. All of the 14 global market dealers are now live on EDRR.

EDRR’s central registry will hold key position data, including product types, notional value, open trade positions, maturity and currency denomination for participants’ transactions, as well as counterparty type. OTC equity derivatives products the service will initially support include options, equity, dividend, variance and portfolio swaps, contracts for difference (CFDs), accumulators, and a final category covering other structured products.

By aggregating and maintaining the data, DTCC’s EDRR will generate reports that keep industry participants and regulators up to date on the industry’s outstanding notional and positions as well as other position related information through a single, secure, easy-to-access portal.

“DTCC played an important role in bringing this new service to market over an aggressive timeframe, allowing the OTC derivatives community to meet commitments made to global regulators to have a repository service running for equity derivatives by the end of July,” said Patrick Dempsey, managing director and chief financial officer (CFO), global equity derivatives group at JP Morgan and chairman of the ISDA Equities Steering Committee, EDRR subgroup.

In addition, DTCC announced that its new European subsidiary, DTCC Derivatives Repository, has received FSA approval to operate as an FSA-regulated service company. This new subsidiary will jointly house the global equity derivatives repository and will maintain global credit default swap data identical to that maintained in its New York-based Trade Information Warehouse. The move is, in part, intended to help ensure that regulators globally have secure and unfettered access to global data on credit default swaps (CDS) by establishing identical CDS data sets on two different continents.


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