OpenLink launches CFTC large trader reporting package
16 April 2012 | 1792 views | 0
OpenLink Financial LLC (OpenLink), a leading provider of cross-asset trading, risk management and operations processing software solutions, announced today the launch of Large Trader Reporting for compliance with U.S. Commodity Futures Trading Commission (CFTC) regulations resulting from the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Key attributes of the CFTC Large Trader Reporting solution include:
- A fully compliant XML-based reporting package which can be submitted directly to the CFTC
- Comprehensive reporting coverage of all 46 CFTC-designated commodity codes
- Flexibility in supporting other commodity codes and products as they are introduced
- A reporting service that can be automated with other end-of-day reporting using OpenLink's comprehensive workflow scheduling tools
Phil Wang, OpenLink SVP of Product Management, said, "Our CFTC Large Trader Reporting compliance solution leverages our industry leading market and technology expertise. We continue to deliver high-value solutions that provide our clients with immediate benefits, such as accelerated compliance times, minimal IT investment, and a maintenance-friendly solution that can readily adapt to future changes. It is our goal to stay up-to-date with the latest regulatory changes so customers can be confident their solutions will be compliant as the market evolves."
Kevin Hesselbirg, CEO of OpenLink, said, "For the past year and a half, we have been developing solutions to address the reporting challenges created by Dodd-Frank. Today, we are very proud to announce that our market experts are ready to demonstrate our Large Trader Reporting capabilities. OpenLink customers can rest easy that these regulatory requirements can be addressed quickly and cost effectively."
As part of the implementation of Dodd-Frank, the CFTC has expanded its market surveillance program by requiring clearing members and swap dealers to report physical commodity swap and swaption positions. The rules apply to swaps and swaptions that are linked, or priced at a differential, to either the price of any of the physical commodity futures contracts the CFTC enumerates (Covered Futures Contracts) or the price of the physical commodity at the delivery location of any of the Covered Futures Contracts. The final rules require regular position reporting and recordkeeping by clearing organizations, clearing members and swap dealers for any principal or counterparty accounts containing physical commodity swaps or swaptions that meet or exceed a "reportable position" threshold set by the CFTC.
The Dodd-Frank Wall Street Reform and Consumer Protection Act makes significant changes to regulations governing the U.S. over-the-counter (OTC) derivatives market, with the goals of improving transparency, reducing systemic default risk and promoting market integrity.