The Depository Trust & Clearing Corporation (DTCC) has received approval by the Commodity Futures Trading Commission (CFTC) to include commodity derivatives coverage at the DTCCs swap data repository (SDR).
The CFTC approved DTCCs SDR for over-the-counter (OTC) credit, equity, interest rate and foreign exchange derivatives in September.
The Dodd-Frank Act mandated the creation of SDRs to collect trading information in the swaps market. Major swap dealers will be required to register with the CFTC and begin reporting to SDRs by December 31.
In late November, the CFTC amended some of its previously established SDR rules after CME Group lobbied for the right to require users of its clearinghouse to use its own SDR. The rules as previously written have been interpreted to imply that swaps dealers may user the SDR of their choice. The CFTC pulled parts of its Frequently Asked Questions regarding SDRs as it collects industry feedback about such a move.
The DTCC spoke out about the move, calling it inconsistent with the commissions previous actions and saying it will cause market participants to question the finality of any commission rule or interpretation.
(CG)