The International Swaps and Derivatives Association, Inc. Commodities Steering Committee has chosen Depository Trust & Clearing Corporation Deriv/SERV and EFETnet to partner with the committee on the next stage of development of the Commodity Derivatives Trade Repository.
This selection is the result of a public request for proposals, which was issued March 25. The request for proposals was issued with the intention to create a trade-reporting repository that ultimately will record all commodity OTC derivatives trade types. The repository will meet all current and future regulations governing repositories and will provide a structure to rapidly report and provide timely access to information to applicable regulators. The ISDA Commodities Steering Committee, which consists of senior business representatives in the commodity derivatives market from both buy- and sell-side firms, issued the request for proposals and selected the provider.
The joint venture between EFETnet and Depository Trust & Clearing Corporation, which is subject to final documentation, brings together EFETnet’s secure data communications and post-trade processing capabilities as well as Depository Trust & Clearing Corporation’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.
DTCC remains committed to partnering with the industry and regulators globally to strengthen, bring greater clarity and mitigate risk in the OTC derivatives market, says Peter Axilrod, managing director of Business Development and OTC Derivative Services at Depository Trust & Clearing Corporation. EFETnets expertise in working with the European commodities and energy user community is a strong complement to DTCCs 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.
Jan van Aken, secretary general of EFET, adds: 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. 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.
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