DTCC has launched its Equity Derivative Report Repository (EDRR).
In a joint venture with DTCC DerivSERV and MarkitSERV, DTCC won the mandate from IDSA to provide a central registry that will hold key data for equity derivatives trades.
The EDRR, based in London, will provide monthly reporting on options, equity swaps, dividend swaps, variance swaps, accumulators, portfolio swaps, CFDs, and more esoteric equity derivatives.
DTCC is responsible for managing the data, and providing reports to regulators and participants. MarkitSERV will provide operational support, including account management, on-boarding and customer service, and other product management services.
DerivSERV is setting up a separate entity to own and run the EDRR, with its own board with independent control of the service.
London will also see the launch of DTCCs new Derivatives Repository, after receiving UK Financial Services Authority (FSA) approval to operate as a FSA regulated Service Company.
This new subsidiary will jointly house the global equity derivatives repository and will maintain global credit default swap data identical to that maintained in DTCCs New York based Trade Information Warehouse.
It is very common for counterparties to be located on different continents and to trade on underlying securities issued across borders, said Stewart Macbeth, managing director and general manager, 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.
DTCC also won the ISDA RFP to provide equity OTC cash flow matching. Industry testing is expected to start in August 2010, with a go-live date planned for November 2010.