The Depository Trust & Clearing Corporation (DTCC), announced today, that it has launched an automated portal to provide regulators worldwide with direct, on-line access to global credit default swap (CDS) data registered in DTCC's Warehouse Trust Company LLC (Warehouse Trust) global repository.
Currently 19 regulators around the world are already live on the portal. This is the first such global regulatory service of its kind in the financial market place and was designed based on guidance provided by the OTC Derivatives Regulators Forum (ODRF) with respect to data access protocols. To view these guidelines: dtcc.com/downloads/products/derivserv/ODRF_guidelines.pdf
"In constructing this new portal, DTCC's goal is to provide access to OTC derivatives data to regulators in a timely, fair, and seamless manner, without any preferential treatment across geographic jurisdictions worldwide," said Stewart Macbeth, DTCC managing director and general manager of DTCC's Warehouse Trust subsidiary, which operates DTCC's global CDS trade repository. "We have been committed since the inception of DTCC's central repository to providing data on global OTC derivatives transactions so that regulators can view risk exposures from a central vantage point as a means to help protect markets against systemic risk. DTCC anticipates that the creation of this portal will be of great value to global financial authorities and banking supervisors in fulfilling their regulatory mission in this regard."
The portal allows for each regulator to access reports tailored to their specific entitlements as a market regulator, prudential or primary supervisor, or central bank. These detailed reports are created for each regulator to show only the CDS data relevant to its jurisdiction, regulated entities or currency, at the appropriate level of aggregation. The information DTCC provides through the portal is consistent with the data sharing guidelines outlined by the 40+ regulators and supervisors that comprise the ODRF.
Examples of the information reports available to regulators via the portal include:
• Counterparty Exposure Report - buy/sell positions for the regulated entity aggregated by counterparty and underty and underlier
• Reference Entity Exposure Reports - buy/sell positions aggregated by underlier and counterparty
• Aggregate Positions where large financial firm is underlying
• Aggregate Positions of large financial firms
• Currency Aggregate Open Position Report, by underlier
• Updated daily open trade search by participant or underlying reference entity. Future enhancements will enable transaction event search using latest available data.
• Specific report requests from a particular regulator will be produced and made available via this view
Information is also made available in the currency of denomination in which the regulator is domiciled.
"DTCC's development of the regulatory portal is an evolutionary process and the company expects to add further reports and enhancements in concert with regulators worldwide on an ongoing basis," said Macbeth.
DTCC has provided, upon request, regulator reporting to more than 20 regulators on CDS information relevant to their areas of purview.
Since November 2008, DTCC has also been providing the general public with a significant level of aggregate transaction information on the top 1,000 corporate and sovereign CDS reference entities and CDS indices. This information is updated every Tuesday after 5:00 p.m. ET (2200 GMT) and is accessible on DTCC.com.
DTCC's OTC Derivatives Trade Repositories
DTCC's repository and post-trade processing services for the global OTC derivatives market is operated through its US-based Warehouse Trust and its European DTCC Derivatives Repository Ltd.
Virtually all CDS contracts in the global market are registered in Warehouse Trust's centralized repository. Warehouse customers include all the major OTC derivatives dealers and more than 1,800 buy-side firms and other market participants in more than 50 countries. The Warehouse also provides a number of other post trade processing services such as payment calculation, netting and central settlement as well as credit and successor event processing.
DTCC Derivatives Repository, launched last August, operates the trade reporting repository for OTC equity derivatives transactions. The equity service, also known as the OTC Equity Derivatives Reporting Repository (EDRR), was established following DTCC's selection by the industry through a Request for Proposal (RFP) process managed by the International Swaps & Derivatives Association (ISDA®) to build such a service for the asset class. Equity data is also included in the regulators portal, but the current range of reports is less extensive.
DTCC Derivatives Repository also houses CDS data identical to that registered in the US regulated Warehouse Trust in an effort to help ensure that regulators globally have secure and unfettered access to CDS information on two different continents. DTCC Derivatives Repository is a UK Financial Services Authority (FSA) regulated service company.