The Depository Trust & Clearing Corporation (DTCC) has announced that its registration to establish a Japanese over-the-counter (OTC) derivatives trade repository with the Financial Services Agency of Japan (J-FSA) has been approved.
DTCC will begin operating the service ahead of the J-FSA’s mandated 1 April deadline for market participants in Japan to begin reporting their OTC derivatives transactions directly to regulators or to a third-party trade repository. Based in Tokyo and operated by the company’s DTCC Data Repository (Japan) KK (DDRJ) subsidiary, this is the first trade repository to be approved and established for the Japanese market.
“DTCC is pleased to be able to deliver to regulatory authorities and market participants in Japan a comprehensive, robust trade repository that brings greater transparency and risk mitigation to the OTC derivatives markets,” said Michael Bodson, chief executive officer (CEO), DTCC. “We are committed to working with supervisors to promote a safer environment for OTC derivatives trading as well as helping our clients in Japan and worldwide meet their reporting obligations.”
DDRJ will support trade reporting across four major OTC derivatives asset classes including credit, equities, interest rates, and foreign exchange (FX). The service uses the same messaging and software capabilities as DTCC’s currently operating repository services in Europe and the US ensuring consistency in the data accessed by regulators in addition to helping DTCC’s global client base avoid duplicative costs as they comply with reporting requirements in multiple jurisdictions across the globe.
“The launch of a Japanese trade repository is a significant and welcome development for facilitating effective OTC derivatives trade reporting in this market,” said Keiko Fukuda, executive director at Morgan Stanley MUFG Securities. “It is critical that there is in place a strong infrastructure that provides market participants with the ability to submit trades for regulatory supervision in a seamless and cost-efficient manner.”
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
Far and away, the largest financial market on the planet is the foreign exchange currencies market, where on average individuals and organisations trade more than $5 trillion daily. In the FX world, the ability to master the market isn't considered a luxury for treasury officers–it's a necessity.
Treasurers are more interested in cross-border payments and automation than real-time payments, as they are consistently asked to do more with less, argues Rick Burke, head of corporate payments at TD Bank in an exclusive interview.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.