DTCC, TriOptima Take Aim at European Repository Matching Rates

Connectivity between repository and reconciliation service looks to reduce matching failures.

city of london
Report matching rates have been a constant thorn in the side of regulators, participants and depository operators.

European derivatives trading moved a step closer to sorting the myriad issues with derivatives reporting today, as the Depository Trust and Clearing Corporation (DTCC) connected to TriOptima's triResolve portfolio reconciliation service.

The service allows for the reconciliation of over-the-counter (OTC) derivative trade reports with trade records at dealers and end users.

Matching both sides of a trade, as mandated by the European Market Infrastructure Regulation, has become a severe problem at European trade repositories, not least because of missing identifiers, non-standardized taxonomies and differing practices regarding end-of-day reconciliation. The problem has been so acute that in June, the CEO of the DTCC's Deriv/Serv service said that just 30 percent of OTC derivative trades were being matched ─ itself better than the 3 percent of listed derivative trades that were matching.

The DTCC's connection now allows users to compare their own trade records with those submitted at the repository, allowing matches to occur even in the absence of correlative unique trade identifiers (UTIs). The sloppy regulatory preparation of UTIs, a critical component in trade matching, has led to a confused and irrational system of identifier generation and attachment.

"Implementing this connectivity enables firms to use triResolve to efficiently verify data in the repositories," says Raf Pritchard, CEO of triResolve. "This is an important tool to ensure accuracy of data in the repositories, a key regulatory goal."

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