01.24.2012
By Terry Flanagan

Trade Repositories Up and Running

DTCC’s interest-rates repository receives trade data from MarkitSERV.

Trade repositories for different asset classes are being populated with data as the industry continues to meet its commitments to implement the G20’s OTC derivatives reforms.

MarkitSERV, an electronic trade processing service for OTC derivative transactions, has begun transmitting confirmed trade records to the Depository Trust and Clearing Corporation’s (DTCC) new Global Trade Repository (GTR) for over-the-counter (OTC) interest rate derivatives.

Since the vast majority of OTC interest rate derivatives trades are electronically confirmed through MarkitSERV, these trades will flow into the trade repository automatically in near real time.

“We already have a track record of submitting trades to the existing trade repositories and are actively expanding this functionality trade reporting becomes mandatory for the industry,” Claire Lobo, managing director and head of interest rates at MarkitSERV, told Markets Media.

MarkitSERV’s middleware platform, in addition to providing trade affirmation, confirmation, and reconciliation services, links dealers and buy-side firms to execution venues, clearinghouses and trade repositories.

“Many market participants think that new regulation and standardization in OTC derivatives markets will invite new entrants into the market and that trade notional will be lower, but volumes higher,” said Lobo. “If this occurs, MarkitSERV expects increases in trade flow to take advantage of our clearing connectivity, reporting ability and to help be operationally as efficient as possible in a growing market.”

MarkitSERV has been certified by, or established links to, LCH.Clearnet, CME, SGX and IDCG for direct submission of interest rate derivative transactions for clearing; to CME, ICE Clear Credit, ICE Clear Europe and Eurex for credit derivatives; and to LCH.Clearnet, CME and SGX for foreign exchange derivatives. MarkitSERV is also engaged with over a dozen other CCPs worldwide and will link to more as they launch.

DTCC was selected to build the global interest rates trade repository in May 2011 by the International Swaps and Derivatives Association (ISDA). The repository went live in December.

While the initial product release focuses primarily on meeting voluntary regulatory reporting commitments of the largest OTC interest rate dealers, in 2012 DTCC’s systems will be expanded to support Dodd-Frank trade reporting requirements, as well as to support additional trade reporting by buy-side and other market participants and to support reporting requirements as additional global regulations emerge.

Related articles

  1. Temporary equivalence is set to expire on June 30 2022.

  2. Margins Raised Ahead of Brexit Vote

    IRS trading volumes have fragmented without an equivalence agreement.

  3. New Collateral Transformers To Emerge

    Phase 5 of the uncleared margin rules came into effect on 1 September.

  4. Buy Side Forced to Review Collateral Arrangements

    Triparty repos can be executed across U.S. Treasury securities to central clearing.

  5. CEDX opened on 6 September, offering contracts on Cboe Europe single country and pan-European indices.