Designation of the Global Markets Entity Identifier utility as a provider of legal-entity identifiers has been extended by the Commodity Futures Trading Commission. Depository Trust & Clearing Corp. and the Society for Worldwide Interbank Financial Telecommunication operate the utility.
Depository Trust & Clearing Corp. and the Commodity Futures Trading Commission agreed to a voluntary dismissal on litigation DTCC brought against the CFTC in 2013 regarding the collection of trading information about swaps. The suit was sparked by the CFTC's decision to allow the Chicago Mercantile Exchange to route swaps-transaction data to its own database, rather than the DTCC's transaction-data repository. "We look forward to continuing to work with the CFTC on this critical component of Dodd-Frank implementation," DTCC General Counsel Larry Thompson said in a statement.
CME Group and Depository Trust & Clearing continue to disagree over who gets to share data required by regulators and recently made available to the public. Because CME is a clearinghouse in addition to a data repository, it says that it should be permitted to record its own proprietary swaps. DTCC says such an arrangement violates transparency rules.
The Depository Trust & Clearing Corp. said that despite the downgrading of the U.S.'s credit rating by Standard & Poor's, it will not alter the valuations of Treasurys it holds in its facilities. The DTCC told traders that they will not be required to post more Treasurys to maintain their collateral levels on outstanding trades. The DTCC did say the National Securities Clearing Corporation is adding "intra-day" margin calls in an effort to deal with increased market volatility and to lower counterparty risks. Standard & Poor's has cut the ratings on National Securities Clearing Corp., Fixed Income Clearing Corp. and Depository Trust Co. to AA+. The entities are subsidiaries of Depository Trust & Clearing Corp. S&P also downgraded Options Clearing Corp., the clearer for all nine U.S. options exchanges. Recent events make SIFMA's Market Structure Conference a must-attend event, register today.
EFETnet, created by the European Federation of Energy Traders, and the Depository Trust & Clearing Corp. plan to set up a global commodity-derivatives trade repository. Regulators will not need to aggregate commodity-derivatives data from numerous sources because the repository will act as a single source for the information.