The Gateway to Algorithmic and Automated Trading

ESMA approves DTCC trade repository in Europe

First Published 7th November 2013

DTCC says next 90 days will be crucial for the industry's readiness to meet reporting requirements.

Sandy Broderick, CEO, DTCC Deriv/SERV

Sandy Broderick, CEO, DTCC Deriv/SERV

"We can add real value to the European derivatives reporting space where we have built a solution tailored for both EMIR reporting firms and European regulatory authorities."

London and Paris - The Depository Trust & Clearing Corporation (DTCC) has announced that the European Securities and Markets Authority (ESMA) has approved DTCC's Derivatives Repository Limited (DDRL) to operate a multi-asset class derivatives repository in Europe.

Located in London, with a data centre in The Netherlands, DTCC's European trade repository will support trade reporting mandated under the European Market Infrastructure Regulation (EMIR) which is due to begin on 12 February 2014.

The approval is DTCC's fourth trade repository license and adds to the firm's existing multi-jurisdictional capabilities in derivatives trade reporting. DTCC's trade repositories have been supporting regulatory reporting in the US since October 2012; in Japan since April 2013 and in Singapore since November 2013.

"We are very pleased to have received approval from ESMA. With our proven track record of providing trade reporting services in other markets, we can add real value to the European derivatives reporting space where we have built a solution tailored for both EMIR reporting firms and European regulatory authorities," said Sandy Broderick, CEO, DTCC Deriv/SERV.

"Reporting for all five derivatives asset classes - credit, interest rate, equity, FX and commodities - which will commence simultaneously on 12 February 2014, will be a significant undertaking for the industry and the next 90 days will be crucial for achieving compliance with EMIR. Our focus is now on helping European dealers and end users of derivatives to meet their reporting obligation in time."

EMIR mandates reporting of both over-the-counter (OTC) and exchange-traded derivatives to trade repositories; it further places the reporting obligation on both counterparties to the trade and as such impacts a larger number of entities than regulations implemented in other jurisdictions.

Véronique Sani, Managing Director, Société Générale, said: "The phased reporting of OTC derivatives trades, both from an asset class and geographical perspective, and our ability to connect to a single trade repository to fulfill all our reporting obligations, has been key to our readiness to meet regulatory obligations seamlessly in the US, Japan and now in Europe"

Christian Zeitsch, Head of Institutional Sales, Bayerische Landesbank, said: "Reporting of OTC derivatives is one of the major aspects of the regulatory overhaul which followed the global financial crisis. Through our connectivity to DTCC, we can meet our reporting obligations in an efficient manner, and respond quickly as new regulatory requirements take effect around the world."

To aid a swift onboading process, DTCC launched a self-registration portal, with an expedited client registration process that can be completed in minutes and connection to the repository activated within 24 hours. Derivatives dealers and end users can connect to DTCC directly or report through a number of intermediaries or middleware providers that are also connected to DTCC's trade repository.

"What we are offering is a flexible and horizontal reporting platform for entities looking to meet their reporting obligations under EMIR," concluded Broderick.