The Financial Services Agency of Japan (J-FSA) has approved The Depository Trust & Clearing Corporation (DTCC)s registration to establish a Japanese OTC derivatives trade repository.
DTCC will begin operating this service ahead of the J-FSAs mandated April 1 deadline for market participants in Japan to begin reporting their OTC derivatives transactions directly to regulators or to a third-party trade repository. The repository will be based in Tokyo and will be operated by the DTCC’s Data Repository (Japan) KK (DDRJ) subsidiary.
DDRJ will support trade reporting across four major OTC derivatives asset classes including credit, equities, interest rates, and FX. The service uses the same messaging and software capabilities as DTCCs currently operating repository services in Europe and the US ensuring consistency in the data accessed by regulators in addition to helping DTCCs global client base avoid duplicative costs as they comply with reporting requirements in multiple jurisdictions globally.
The launch of a Japanese trade repository is a significant and welcome development for facilitating effective OTC derivatives trade reporting in this market, said Keiko Fukuda, executive director at Morgan Stanley MUFG Securities. It is critical that there is in place a strong infrastructure that provides market participants with the ability to submit trades for regulatory supervision in a seamless and cost-efficient manner.
Japan continues to grow in prominence as an important component of OTC derivatives trading globally, said Stewart Macbeth, president and CEO of DTCCs Deriv/SERV LLC subsidiary. DTCC is focused on providing regulators and our clients in Japan with the guidance and services they need locally particularly now that reporting requirements are beginning to take hold in this market.
(JDC)