DTCC and EFETnet Launch Global Trade Repository for Commodities Derivatives

EFETnet and the Depository Trust & Clearing Corporation (DTCC) have announced that, following their successful pilot programme launched in January as the first global repository for over-the-counter (OTC) commodity swaps, they have begun accepting trade submissions from commodity market participants into the new Global Trade Repository for Commodities (GTRfC). DTCC and EFETnet’s industry governed low-cost model provides users the ability to submit trades to a single repository in order to fulfil reporting obligations to regulators globally.

Since the US is scheduled for swap data reporting to regulators later this year, submission testing for Dodd-Frank Swap Data Repository (SDR) requirements will begin May 14. This includes real-time messages, primary economic terms, confirm data and valuation messages as required by the US Commodity Futures Trading Commission (CFTC) rules. At that time, the repository will accommodate single or dual-sided trade submissions, as well as support for Dodd-Frank specific fields.

The repository will offer a full range of commodities swaps, both physical and financial, and will be ready for Dodd-Frank Act reporting prior to 14 October 2012, when all OTC commodity derivatives must be reported to a trade repository if they are subject to the jurisdiction of the CFTC. In addition, the repository is working with market participants and regulators from around the globe to promote a single, central location to which swaps and other trade types can be reported.

This will also include a single, central location from which regulators can view information on swaps positions which fall into their individual jurisdictions, thereby easing the reporting burden for all market participants. Regulatory reporting through DTCC’s web-based regulatory portal will begin once the repository becomes fully operational in October, and the publishing of public data is expected to follow.

“The launch of the GTRfC by DTCC and EFETnet is another important step forward in improving regulatory transparency in the OTC derivatives markets,” said Julian Day, head of market infrastructure for the International Swaps and Derivatives Association (ISDA). “Policymakers around the world will have greater insight and access to OTC derivatives trades across the range of interest rate, credit, equity and commodities asset classes.”


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