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DTCC Plans Subsidiary in London to House Global CDS Data

Ensures identical CDS data sets on two continents for regulators to access.

The Depository Trust & Clearing Corporation (DTCC) has established a new European-based subsidiary called DTCC Derivatives Repository Ltd. to maintain global credit default swap data identical to that maintained in its New York based Trade Information Warehouse.

The intent behind the move is to 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, according to the release.

DTCC Derivatives Repository Ltd. will be headquartered in London under a regulatory application filed with the Financial Services Authority (FSA) in the UK. This new subsidiary will jointly house the global equity derivatives repository that DTCC is building as a result of winning the International Swaps and Derivatives Association (ISDA) global bid for this service.

The decision to locate the European subsidiary in London was based on the ISDA mandate to have the global equity derivatives repository in London.

The European subsidiary will support a variety of critical functions, including operational, customer, technical and most importantly, CDS trade reporting needed to ensure greater public transparency and to support the information needs of regulators and supervisory authorities.

“DTCC has always envisaged a ‘global solution’ for repository services supporting each OTC asset class,” commented Stewart Macbeth, managing director and general manager, Trade Information Warehouse, in the release. “It is very common for counterparties to be located on different continents and to trade on underlying securities issued across borders,” stated Macbeth. “This means that repositories for any asset class need to maintain global information to be useful. It also means that steps need 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.”

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

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