The Depository Trust & Clearing Corporation (DTCC) announced today that the Commodity Futures Trading Commission (CFTC) has approved a request by DTCC Data Repository (U.S.) LLC (DDR) to amend its multi-asset class swap data repository (SDR) in the U.S. to include commodity derivatives. The CFTC granted provisional registration to DDR to operate a U.S. SDR for over-the-counter (OTC) credit, equity, interest rate and foreign exchange derivatives in September.
The addition of commodities derivatives to DDR’s SDR service extends the offering to all five asset classes and is a critical element to provide regulators with greater transparency into this market as envisioned by the Dodd-Frank Act. It is an important step in addressing systemic risk issues and ensuring regulators will be able to assess counterparty risk exposures across asset classes.
As an at-cost, user-governed cooperative, DTCC’s primary mission is to mitigate risk in the financial system and achieve greater cost efficiency for its clients. The primary purpose of its SDR services is to achieve greater transparency and promote a safer trading environment for the OTC derivatives market.