As per Dodd Frank act for USA and all the other acts in different G20 countries, all the OTC derivatives transactions have to be reported to the regulator. Regulators do not have the necessary architecture to collect and store all the transactions in OTC derivatives across different regions.
For the purpose, GTR or Global Trade Repositories were created which act as a Central trade warehouse and collects/stores all OTC derivative transactions required by the regulators. Dodd-Frank Act, EMIR, HKMA, MAS, MiFID II, ASIC and other similar regulations around the world have introduced different global trade repositories, also known as a Swap Data Repository (SDR) to collect detailed information about OTC transactions.
Global Trade Repository (GTR) provides global trade repository services for all the different asset classes which are Equity, FX, Interest Rate Derivatives, Credit and Commodity. For each of the asset classes, GTR maintains snapshot of overall position and market risk exposures and the reports are shared with all the regulators on regular basis (daily).
Key Objectives of GTR:
⦁ Collect and store all trade related information
⦁ Match the report with other party submission for dual sided reporting cases
⦁ Provide required information to the regulator to promote financial stability in the market
⦁ Help regulators to enhance market transparency
⦁ Monitor systematic risk and all live positions by publishing position reports on regular basis
The most important GTR is the “Depository Trust and Clearing Corporation” (DTCC), which runs various trade repositories in different regions of the world. It has three global trade repositories as of now
⦁ DTCCUS repository – takes care of CFTC and Canada Jurisdiction
⦁ DTCCEU repository – For ESMA, MiFID II etc.
⦁ DTCCSG repository – For HKMA, MAS etc.