The European Securities and Markets Authority (ESMA) has registered the Depository Trust & Clearing Corporation (DTCC) Data Repository (Ireland) as a trade repository (TR) under the European Market Infrastructure Regulation (EMIR) and the Securities Financing Transactions Regulation (SFTR) with effect from 23 December 2020.
This registration is part of the DTCC Group strategy to ensure it continues to offer services to EU clients after the end of the Brexit transition period on 31 December 2020.
After this date, the UK-based TR of the Group (DTCC Data Repository PLC – DDRL UK) will cease to be registered with ESMA.
Meanwhile, DTCC Data Repository (Ireland) will be the only TR of the group operating in the EU.
DTCC Data Repository (Ireland) will cover all derivative asset classes including commodities, credit, foreign exchange, equities and interest rates.
It will also cover securities financing transactions (SFT) such as repo transactions and securities lending.
TRs are commercial firms that centrally collect and maintain the records of derivatives contracts and/or SFTs reported to them.
The registration of a TR means that it can be used by counterparties to a derivative transaction and/or SFT to fulfil their trade reporting obligations under EMIR and/or SFTR, respectively.
To be registered as a TR under EMIR or SFTR, a company must be able to demonstrate to ESMA that it can comply with the requirements of both regulations.
EMIR was introduced to improve transparency, establish common rules for central counterparties and TRs as well as to reduce the risks associated with the over the counter derivatives market.
Meanwhile, SFTR was implemented to enhance the transparency of the securities financing market, requiring all counterparties to SFTs to report the details of any SFT they have concluded, as well as any modification or termination, to a registered TR.
In July, ESMA granted four TRs with licences to operate under the SFTR. This included DTCC Derivatives Repository, UnaVista Trade, KDPW, the Polish central securities depository, and REGIS-TR.
Both SFTR and EMIR provide for the direct supervision and the registration of TRs by ESMA which also carries responsibility for the recognition of non-EU TRs.
