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The Depository Trust & Clearing Corporation (DTCC) announced today that it began to publish public information on the exchange of interest rate instruments traded over the counter (OTC). The data were published for the first time yesterday at 5:00 p.m. (2200 BST).
Data on interest rates meet public data on OTC credit derivatives that are provided on the website of the DTCC. Interest rates are the single largest segment of OTC derivatives, with over 570 trillion gross notional value of $ 4.5 million contracts on interest rates outstanding.
Public data on the exchange of instruments on interest rates will be published weekly on the DTCC website at www.dtcc.com and will include aggregated anonymous information about the positions for all products interest rates, with breakdowns by currency, maturity, and by-product according to the status compensated / uncompensated product. No historical data will be published initially as data continue to reside in TriOptima, which acted as a central repository for sector interest rates.
“The release of public data is a key element in providing greater transparency and understanding of the OTC derivatives market, and having available data on interest rate derivatives, a single category for the derivatives largest in terms of gross notional amount, is a critical step in improving the visibility in this market segment, “said Stewart Macbeth, president and CEO of the subsidiary Deriv / SERV LLC, DTCC.
Publication of data to regulators and the public does mark the end of the transition for the sector since the former Central TriOptima for interest rates to the new central repository for global interest rates of DTCC. The new plant of the DTCC became operational in December 2011. Between December and May, the largest global traders have submitted data in parallel to both the DTCC and TriOptima while the sector was on the transition to the new central DTCC’s depository, and traders will now start submitting new data on trade in derivatives on interest rates only to the DTCC.
DTCC was selected to produce a central repository for global multiple asset classes for OTC derivatives credit, equity, interest rate, commodity and foreign exchange. For four asset classes? Credit derivatives, interest rate, equity and commodity? The Central Depository is currently accepting global trade data, and the asset class exchange will begin customer acceptance testing in May before moving to full production, currently scheduled for October. In addition, a web portal to DTCC’s regulatory reporting is already in place for credit derivatives, equity and interest rate for the appropriate data sets.
The Global Trade Repository for Commodities was launched in January with a pilot program in partnership with EFETnet BV and, after finalizing the pilot program, started from April to accept bids from trading companies interested.
Global Trade Services Repository for foreign exchange derivatives, credit, interest rate and equity are services of DTCC Derivatives Repository Limited, a wholly owned subsidiary of DTCC.
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