The Depository Trust & Clearing Corporation (DTCC) is encouraging institutions to act ahead of the third phase of derivatives reporting requirements to be implemented by Australian Securities & Investments Commission (ASIC) next month.

 

Global Trade Repository (GTR) service, operating as the DTCC Data Repository (Singapore), is the only holder of an Australian trade repository license, according to Peter Tierney, regional head of DTCC’s GTR business for Asia-Pacific. Today, 18 of Australia’s leading financial market participants are already using the service for ASIC-reportable open OTC positions across 5 asset classes, with a total gross notional of A$24.6 trillion.

 

Beginning April 13 2015, institutions with gross notional outstanding in reportable over-the-counter (OTC) positions between A$5 billion and A$50 billionn (3A entities) are required to report trades to the DTCC trade repository. On October 12 2015, this requirement will be extended to entities holding less than A$5 billion (3B entities) as well as apply to additional asset classes, including equity, FX and commodities.

 

A rigorous process underpins trade repository on-boarding, so we encourage any institutions who may qualify as 3A to opt in to the GTR service immediately,” Tierney said. “We similarly urge 3B entities to act well ahead of their respective October deadline.”

 

added that DTCC infrastructure and support is firmly in place to help with the next phases of derivatives reform, including the Sydney appointment of Oliver Williams as DTCC’s GTR business manager. He will oversee GTR on-boarding and regulatory collaboration.

[1] ASIC public data - http://www.dtcc.com/repository-otc-data/asic-reports.aspx 1



In addition to working with regulators around the next phases of trade reporting mandates, DTCC has partnered closely with market participants and industry bodies in Australia to encourage early opt-in to the trade repository to prevent risk of non-compliance.

 

“The majority of institutions are prepared for reporting requirements. We do expect a smooth transition to phase three, however it is important that first-time reporters allow maximum time for trade repository on-boarding, connectivity and testing,” he said.

 

Tierney added that in addition to greater visibility of OTC derivatives achieved by regulators, the straight-through processing (STP) flow of data from confirmation platforms to the trade repository should enhance the quality of data.