The Depository Trust & Clearing Corporation (DTCC) has filed applications to establish a limited purpose trust company that will house the functions of DTCCs Trade Information Warehouse for credit derivatives.
The Warehouse today serves as the worlds central repository for over-the-counter credit derivatives, containing the bulk of all credit derivatives traded worldwide.
The new company, to be called The Warehouse Trust Company LLC, has filed applications for membership in the Federal Reserve system and with the New York State Banking Department (NYSBD) to form a limited purpose trust company and will become a wholly-owned subsidiary of DTCC Deriv/SERV LLC, which operates DTCCs automated services for OTC derivatives.
In filing this application to create The Warehouse Trust Company, DTCC is responding to the expressed intentions from regulators globally to bring added risk protection and regulatory oversight to the credit derivatives market, said Donald F. Donahue, DTCC chairman and CEO.
It is expected that in the new company, the Trade Information Warehouse for credit derivatives, will become subject to a collaborative global regulatory scheme involving interested regulators in Europe as well as the US. The new trust company will also establish a subsidiary in Europe to facilitate the offering of regulated Warehouse services in Europe.