Amsterdam-based EFETnet B.V. and The Depository Trust & Clearing Corporation today said they have launched the first global repository for OTC commodity swaps, and are accepting trade submission from commodity market participants in time for the May 14 testing deadline under Dodd-Frank.
The launch follows the completion of a successful pilot in January by DTCC and EFETnet, an independent company, owned by the European Federation of Energy Traders. EFETnet was formed in 2004 to deliver the benefits of electronic data exchange and standardization.
Users now have the ability to submit trades to a single repository in order to fulfill reporting obligations to regulators globally, according to EFETnet and DTTC in their release.
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 reporting of real time messages, primary economic terms, confirm data and valuation messages as required by the CFTC rules. At that time, according to the release, the global repository for OTC commodity swaps, will accommodate single or dual-sided submissions, as well as support for Dodd-Frank specific fields.
The repository will cover a full range of commodities swaps, both physical and financial, and will be ready for Dodd-Frank Act reporting prior to Oct. 14, 2012, when all OTC commodity derivatives must be reported to a trade repository if they are subject to jurisdiction of the CFTC. The repository is also working with market participants and regulators around the globe to promote a single, central location to which swaps and other trade types can be reported, states the release.
"DTCC is delighted to be working with EFETnet to provide a repository for commodities that will support regulatory reporting requirements for this sector," commented Stewart Macbeth, President and CEO of DTCC's Deriv/SERV subsidiary in the release "We have been working for some time with the commodities industry on an implementation plan that both provides improved trade reporting timelines and quality standards and is compliant with existing and upcoming global legislation. The Global Trade Repository for Commodities is the result."
In the release, julian Day, Head of Market Infrastructure for the International Swaps and Derivatives Association (ISDA), said the launch of the Commodity Derivatives trade repository by DTCC and EFETnet "is another important step forward in improving regulatory transparency in the OTC derivatives markets. 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."
Trade reporting for the repository will be provided to regulators through DTCC's web-based regulatory portal. Currently, the portal is utilized by more than 38 regulators globally. Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio