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.
Depository Trust & Clearing Corp. is developing a data warehouse of privately traded currency derivatives. The data repository, a partnership between DTCC and the Society for Worldwide Interbank Financial Telecommunication, would help market participants and regulators monitor the market.
The Depository Trust & Clearing Corp. and Markit Group are offering to simultaneously clear and settle loan trades, a service that protects loan sellers by paying them as soon as legal ownership of a debt is transferred to the buyer. "The primary focus is risk mitigation for the settlement process by introducing a delivery-versus-payment mechanism for syndicated loans," said Mathew Keshav Lewis, a vice president of DTCC. "This asset class has always lacked a centralized infrastructure; it will have knock-on effect on how investors and lenders view this market."
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.