ON THE MONITOR
Beyond Swaps: Now, A Repository of Details on Equity Derivatives
June 11, 2010
Transparency. It is, at long last, a buzzword in the historically opaque over-the-counter derivatives market. After credit default swaps and other OTC derivatives led to a global financial crisis, regulators now are trying to get a close ongoing look at details of any transaction that can lead to a build-up of market and counterparty risk.
So far, the Depository Trust & Clearing Corp. has been at the center of that initiative through the creation and expansion of a Trade Information Warehouse, a central global repository for details on contracts on swaps and other credit derivatives.
Launched in 2006, the TIW stores details on an estimated 95 percent of all contracts. That information, also provided to global regulators and investors, is used to net and centrally settle payment obligations as well as settle credit events such as bankruptcies.
But the Trade Information Warehouse isn’t the only database storing information on OTC derivatives. Nor will it be the last. DTCC says it is on target to go live with a new repository for equity derivatives on July 31 called the Equity Derivative Reporting Repository (EDRR).
THE WEEK AHEAD:
MONDAY, JUNE 14
DIALOGUE: Conversation with SEC Chairman Mary Schapiro
6:30 p.m., Financial Women's Association, New York Law School
TUESDAY, JUNE 15
WEBCAST: The Changing Face Of Wealth Management Technology
11 a.m., Interactive Data, Aite Group, Pershing, Raymond James
WEDNESDAY, JUNE 16
EVENT: Social Media For Financial Communicators
Through June 18. Nasdaq MarketSite, New York
OPEN MEETING: Investment Company Advertising
10 a.m., SEC Headquarters, 100 F Street NE, Room L-002 (Auditorium)
WEBCAST: Data Center Interconnection Made Simple
1 p.m., Cisco Systems
FRIDAY, JUNE 18
OPEN MEETING: Newbridge Securities Corporation
10 a.m., SEC Headquarters, 100 F Street NE, Room L-002 (Auditorium)
THE WEEK THAT WAS:
BNY Mellon Creates Dark Pool for Debt (SIN)
UK Regulator Awards $32 Million in Bonuses (SIN)
Regulation of High-Frequency Trading World Hurt Liquidity, Poll Indicates (SIN)
$100 Million Solution: Basel III Leading to
Knight Takes Stake in European Trading Platform (SIN)
Misys and Smartstream Link Platforms (SIN)
High-frequency trader Getco hires key SEC staffer (Reuters)
Morgan Stanley, J.P. Morgan to Lead GM IPO (WSJ)
Goldman Sachs Hudson CDO Said to Be Target of Second SEC Probe (Bloomberg)
CFTC Eyes Rules for Low-Latency Co-location (Data Center Knowledge)
JPMorgan May Take Brunt of New Financial Reform (Fox)
Financial Adviser Kenneth Starr Indicted on 23 Counts of Wire Fraud (PR Newswire)
