About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

DTCC Launches Equity Derivatives Reporting Repository, Gains FSA Approval for UK Subsidiary

Subscribe to our newsletter

Following its announcement last month that it would be establishing a European-based derivatives trade reporting repository, the Depository Trust & Clearing Corporation (DTCC) has indicated that it has gained the approval of the Financial Services Authority (FSA) to establish the required UK subsidiary to launch a repository on European shores. DTCC has also launched its Equity Derivatives Reporting Repository (EDRR) in the US market, which will hold key position data, including product types, notional value, open trade positions, maturity and currency denomination for participants’ transactions, as well as counterparty type. Both moves should strengthen the vendor’s utility pitch for the reference data space, should it choose to go down this route, following its acquisition of Avox last month.

The building of the EDRR repository follows a competitive request for proposal process led by the International Swaps and Derivatives Association (ISDA) last year, and all of the 14 global market dealers are now live on EDRR.

The service is initially supporting OTC equity derivatives including options; equity, dividend, variance and portfolio swaps; contracts for difference (CFDs); accumulators and other structured products. The idea is that by aggregating and maintaining the data, DTCC’s EDRR will generate reports that keep industry participants and regulators up to date on the industry’s outstanding notional and positions as well as other position related information through a single, secure portal.

The new European subsidiary, DTCC Derivatives Repository has received approval to operate as an FSA regulated service company. This new subsidiary will jointly house the global equity derivatives repository and will maintain global credit default swap (CDS) data identical to that maintained in its New York based Trade Information Warehouse. According to the DTCC, the move is, in part, intended to help ensure that regulators globally have secure and unfettered access to global data on CDSs by establishing identical CDS data sets on two different continents.

“It is very common for counterparties to be located on different continents and to trade on underlying securities issued across borders,” explains Stewart Macbeth, managing director and general manager of the Trade Information Warehouse. “We felt that steps needed 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.”

Another by-product of these moves is that in its role as a data repository for these new markets, the DTCC will have direct access to a store of the related reference data. As noted recently by Darren Purcell, European director for Cusip Global Services (CGS), which is partnering with new DTCC subsidiary Avox on entity identifiers, its position as a market infrastructure could also strengthen its pitch to the US and European market as a neutral reference data utility provider.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Meeting the high stakes challenge of effective sanctions data monitoring

Identifying securities related to a sanctioned domicile or company is a straightforward concept, but in practice, it is a far more challenging task for compliance professionals. Receiving a list of sanctions isn’t enough. In order to accurately define and maintain your ‘do not trade’ list, you need to identify all the securities related to each...

BLOG

A-Team Group Announces Winners of its Prestigious Innovation Awards 2025

The most innovative data and technology solutions for capital markets were recognised today as A-Team Group announced the winners of this year’s A-Team Group Innovation Awards 2025. Now in its fifth year, the prestigious awards recognise the innovative projects created across the vendor and practitioner communities that provide high-value solutions to organisations within capital markets...

EVENT

RegTech Summit London

Now in its 9th year, the RegTech Summit in London will bring together the RegTech ecosystem to explore how the European capital markets financial industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Entity Data Management Handbook – Sixth Edition

High-profile and punitive penalties handed out to large financial institutions for non-compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations have catapulted entity data management up the business agenda. So, too, have industry and government reports on the staggering sums of money laundered on a global basis. Less apparent, but equally important, are...