The Depository Trust & Clearing Corporation (DTCC) will establish a new European subsidiary called DTCC Derivatives Repository, which will maintain global credit default swap data identical to that maintained in its New York based trade information warehouse.
DTCC Derivatives Repository will be headquartered in London under a regulatory application filed with the Financial Services Authority (FSA) in the UK.
This new subsidiary will jointly house the global equity derivatives repository being built by DTCC as the result of winning the International Swaps and Derivatives Association (ISDA) global bid for this service. The location of this European subsidiary was made based on the ISDA mandate to have the global equity derivatives repository in London, said DTCC.
This European-based repository will support a wide variety of critical functions, including operational, customer, technical, and most importantly, CDS trade reporting needed to ensure greater public transparency and to support the information needs of regulators and supervisory authorities.
Stewart Macbeth, managing director and general manager for trade information warehouse at DTCC, said: “DTCC has always envisaged a ‘global solution’ for repository services supporting each OTC asset class. It is very common for counterparties to be located on different continents and to trade on underlying securities issued across borders. This means that repositories for any asset class need to maintain global information to be useful. It also means that steps need to be taken to ensure that the data is always available to regulators globally regardless of events and circumstances taking place in one location or another.”