The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

EFETnet’s and DTCC Selected by Industry to Develop Commodity Derivatives Trade Repository

EFETnet and DTCC Deriv/SERV (DTCC), announced that the two at-cost, user governed industry cooperatives are collaborating with market participants in the commodities industry to establish a global Commodity Derivatives Trade Repository. The proposed new repository, which will be domiciled in Europe and jointly owned by DTCC and EFETnet, follows EFETnet and DTCC being selected by the International Swaps and Derivatives Association, Inc.’s (ISDA) Commodities Steering Committee to work with the industry on the next stage of development for this new service.

EFETnet and DTCC’s industry non-commercial cooperative models will create a joint neutral platform where many competing organizations can come together to participate in a single non-commercial reporting solution. Such a single, non-commercial, truly transatlantic solution allows regulators globally to receive from one source most if not all of the OTC commodity derivative trade data in which they have a regulatory or supervisory interest – without each regulator having to aggregate data from multiple sources which may result in double counting or omissions, or simply in improper understanding due to variations in data formatting. It will also allow aggregate market information made available to the general public to be more complete and accurate.

The joint-venture integrates EFETnet’s vast experience in the commodities arena and its deep network of contacts in the user community with DTCC’s proven track record in building global trade repositories. The combination also brings together representatives of the purely commodity trading community with representatives of the financial services community, and, although the joint venture will be headquartered in Europe, it will be a truly transatlantic strategic partnership.

The joint-venture between EFETnet and DTCC, which is subject to final documentation, brings together EFETnet’s secure data communications and post trade processing capabilities as well as DTCC’s repository and regulatory reporting infrastructure. The combination will provide the commodities industry with an at cost, industry owned and governed cooperative to streamline reporting to multiple regimes.

“This joint EFETnet and DTCC initiative, in partnership with the industry, is truly an international exercise that aims to meet the current and future regulatory needs of our customers in the commodity derivatives market,” said Jan van Aken, Secretary General, EFET. “We are pleased to partner with DTCC to develop a service that will ultimately record all commodity OTC derivatives transactions, which can only strengthen the infrastructure for the trading of these instruments.

“DTCC remains committed to partnering with the industry and regulators globally to strengthen, bring greater clarity and mitigate risk in the OTC derivatives market,” said Peter Axilrod, managing director, Business Development and OTC Derivative Services, DTCC. “EFETnet’s expertise in working with the European commodities and energy user community is a strong complement to DTCC’s experience automating and bringing increased safety into the OTC derivatives market. We believe our joint service delivers a great value proposition to market participants in this asset class.”

Related content

WEBINAR

Upcoming Webinar: Fighting fraud and financial crime with RegTech

Date: 24 June 2021 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Financial fraud and crime continue to escalate causing significant damage to companies, countries and the global economy despite enormous efforts by firms and organisations in the financial services sector to identify and expel bad actors. As these bad actors...

BLOG

FundApps Gets ‘Significant’ Growth Funding from Scottish Equity Investment

London-based FundApps has secured a ‘significant’ investment from Scottish Equity Partners (SEP) to fund future growth. The company will use the funds for development of its core Shareholding Disclosure, Sensitive Industries and Position Limits product suite, as well as expansion of its client base of 100 or so buy-side and sell-side firms. “Having bootstrapped our...

EVENT

RegTech Summit APAC Virtual

RegTech Summit APAC will explore the current regulatory environment in Asia Pacific, the impact of COVID on the RegTech industry and the extent to which the pandemic has acted a catalyst for RegTech adoption in financial markets.

GUIDE

Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...