First facility for OTC commodity swaps launched after successful pilot.
The Depository Trust and Clearing Corporation (DTCC) and EFETnet have announced the launch of the world's first global trade repository for over-the-counter (OTC) commodity derivatives.
In line with US Commodity Futures Trading Commission (CFTC) rules on swap data reporting, the Global Trade Repository for Commodities (GTRfC) will begin testing submissions for Dodd-Frank Swap Data Repository requirements on 14 May. From there, reporting requirements will be phased in over the next few months. All participants under the pureview of the CFTC engaged in OTC commodity derivatives trades must begin reporting in line with the new mandate from 14 October 2012.
The GTRfC aims to provide a single location into which market participants can report their data on commodity swaps, as well as a central location for regulators to access an overview of the market.
"The launch of the Commodity Derivatives trade repository by DTCC and EFETnet is another important step forward in improving regulatory transparency in the OTC derivatives markets," says Julian Day, head of market infrastructure at the International Swaps and Derivatives Association (ISDA). "Policymakers around the world will have greater insight and access to OTC derivatives trades across the range of interest rate, credit, equity and commodities asset classes."