The US futures and option market regulator Commodity Futures Trading Commission (CFTC) has approved creation and operation of Depository Trust & Clearing Corporation’s (DTCC) Data Repository (DDR) multi-asset class swap data repository (SDR) in the US.
DDR chairman Michael Dunn said the approval represented an important step in implementing the Dodd-Frank Act and helping to bring greater transparency to the OTC derivatives market.
"We will be fully ready to operate on 12 October 2012, the first day of required reporting," Dunn added.
"It will allow the financial service industry to partner with regulators to more effectively monitor and mitigate potential systemic risk."
Under CFTC rules, trades in all other derivatives classes will need to be reported in the beginning of mid-January 2013, and trades between buy-side firms in mid-April 2013.
The approval will enable DDR to operate for credit, equity, interest rate and foreign exchange derivatives, while permission to function for commodities derivatives remains pending.
The first credit derivatives’ global trade repository was created by DTCC in 2006 and following the financial crisis in 2008, global support for trade repositories, or swaps data repositories was extended.
DTCC’s existing repository for credit derivatives currently holds over 98% of the OTC credit derivatives trading globally, with almost 3,000 firms voluntarily participating in the repository.
Over 70% of the OTC interest rate derivatives trades globally, with more than 4 million contracts with a notional value of more than $504 trillion housed in the repository, and more than 60% of the equities derivatives globally is received by DTCC.