DTCC has launched its Equity Derivatives Reporting Repository (EDRR), which 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.
All 14 global market dealers are now live on EDRR, DTCC said in a release.
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 OTC derivatives asset classes, according to the release.
OTC equity derivatives products the service will initially support include options; equity, dividend, variance and portfolio swaps; CFD (contracts for difference); accumulators and a final category covering other structured products.
"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 CFO, Global Equity Derivatives Group at J.P. Morgan and chairman of the International Swaps and Derivatives Association's (ISDA's) Equities Steering Committee, EDRR subgroup.
Meanwhile, DTCC announced that its new European subsidiary, DTCC Derivatives Repository has received UK Financial Services Authority (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, DTCC said.
"It is very common for counterparties to be located on different continents and to trade on underlying securities issued across borders," said Stewart Macbeth, managing director and general manager, Trade Information Warehouse. "We felt that steps needed to be taken to ensure that the data is always available to regulators globally regardless of events and circumstances taking place in one location or another."
