The Depository Trust & Clearing Corporation (DTCC), has outlined a three-prong plan to further harmonize derivatives trade reporting requirements and deliver against objectives that were originally established by the Group of 20 (G20) at its historic 2009 summit in Pittsburgh.<\/p>\n
<\/p>\n
In a new paper released, titled, “Course Correction: Finding a New Path to Global Data Harmonization in Derivatives Trade Reporting<\/a>,” DTCC outlines its recommendations for a path forward in reaching global data harmonization in the over-the-counter (OTC) derivatives market.<\/p>\n “OTC derivatives trade reporting standardization would enable regulators to reach the level of transparency and global risk monitoring identified as critical by the G20 summit, but has been a challenge to achieve for individual jurisdictions,”<\/em> said Chris Childs, DTCC Managing Director and Head of Repository and Derivatives Services.<\/strong> “With several trade reporting rule sets currently under regulatory review, now is the time to work together and continue to progress against these objectives, and more specifically, to align individual jurisdiction trade reporting rules to facilitate global market transparency.”<\/em><\/p>\n <\/p>\n While the industry and regulators now have greater insights into local market risk, insufficient alignment of reporting requirements across jurisdictions could impede the global aggregation and analysis of OTC derivatives transaction data reported to trade repositories. This could lead to a lack of transparency across jurisdictions, which could hinder regulators’ ability to adequately monitor systemic risk.<\/p>\n Several regulatory bodies are now embarking on the adoption of critical data elements (CDE) for derivatives trade reporting as identified by the Committee on Payments and Market Infrastructures (CPMI) and the Board of the International Organization of Securities Commissions (IOSCO) working group on harmonization (Harmonization Group). The CDE initiative was designed to promote the data harmonization critical to enabling data aggregation and systemic risk transparency. However, disparate adoption of the CDE and other reporting standards across jurisdictions will hinder the achievement of the G20’s risk mitigation objectives, and create complex implementation burdens for market participants.<\/p>\n <\/p>\n Within the paper, DTCC outlines three steps the industry should take to improve in this area and advance toward the transparency and systemic risk monitoring goals envisioned by the G20.<\/p>\n Childs <\/strong>concluded, “It is critically important that we embark on these efforts now and capitalize on this unique moment to enhance systemic risk mitigation before market participants begin their next round of updates to conform to the latest rules revisions, some of which are projected for implementation in 2022.”<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" The Depository Trust & Clearing Corporation (DTCC), has outlined a three-prong plan to further harmonize derivatives trade reporting requirements and deliver against objectives that were originally established by the Group … <\/p>\nChallenges in Achieving Standardization in Trade Reporting <\/h4>\n
A New Path Forward <\/h4>\n
\n
\n\t <\/li>\n
\n\t <\/li>\n