OpenLink Financial LLC (OpenLink), a leading provider of cross-asset trading, risk management and operations processing software solutions, announced plans to expand its suite of Dodd-Frank Regulatory Compliance solutions with The Depository Trust & Clearing Corporation's (DTCC) service for Swap Data Repository (SDR) reporting.
This solution will soon enable interest rate, credit and commodity market participants to comply with U.S. Commodity Futures Trading Commission (CFTC) SDR reporting requirements resulting from the Dodd-Frank Wall Street Reform and Consumer Protection Act.
"We are delighted to work with OpenLink Financial to provide our mutual customers in the financial community with regulatory reporting solutions," said Stan Preston, Vice President and global product lead for commodities reporting at DTCC. "The SDR will ultimately support the full range of reporting for both physical and financial commodity swaps, as well as credit, interest rate, foreign exchange and equities swaps. The repository will be ready when reporting commences on Oct. 12, 2012, for credit and interest rates swaps, and on January 2013 for the other asset classes. DTCC will continue working with OpenLink to meet global reporting requirements going forward."
SDR reporting tools are a key part of OpenLink's suite of Dodd-Frank compliance solutions and will offer another option that supports reporting of CFTC required swap data including, primary economic terms (PET), confirmation, continuation, and valuation data.
Phil Wang, SVP of Product Management at OpenLink, said, "Our clients represent market participants in all asset classes, and DTCC's SDR service greatly facilitates derivatives reporting for different business lines by providing a common reporting framework. The flexible nature of DTCC's SDR is well suited to our diverse client set - whether the market participant has limited reporting needs for a single product or wants to consolidate global reporting across many major asset classes."
The Dodd-Frank Wall Street Reform and Consumer Protection Act makes significant changes to regulation of the U.S. over-the-counter (OTC) derivatives market, with the goals of improving transparency, reducing systemic default risk, and promoting market integrity. As part of the implementation of Dodd-Frank, market participants have regulatory reporting obligations to submit trade data on swap transactions to SDRs. SDRs are new entities created under the Dodd-Frank Act to provide a central facility for swaps data reporting and recordkeeping. All swaps, whether cleared or uncleared, are required to be reported to registered SDRs.