DTCC Deriv/SERV LLC

From MarketsWiki
Jump to: navigation, search
CQG logo.png

DTCC Deriv/SERV LLC
DTCC logo large.gif
Founded 1999
Headquarters New York
Key People Michael Bodson, CEO; Larry Thompson, Chairman, DerivSERV

DTCC Deriv/SERV LLC is a subsidiary of the DTCC that services post-trade processing of derivatives through the firm's Trade Information Warehouse (TIW), Global Trade Repository (GTR) and Equity Cashflow Matching (ECM) engine. Deriv/SERV was designed to enable firms to meet regulatory reporting requirements on a domestic and international basis. [1]

Products and Services

Trade Information Warehouse TIW is made up of two components:
(1) A trade database containing the "official legal record" for all contracts eligible for automated Deriv/SERV confirmation.
(2) A central support infrastructure that automates and standardizes post-trade processes (such as payments, notional adjustments and contract term changes) over the life of each contract, which can extend five or more years. [2]

Global Trade Repository The GTR operates as a trade repository for all OTC derivative contracts, providing regulators with access to information used on a variety of basis. GTR service supports the mandatory reporting as regulations are finalized in each country, such as the Dodd Frank Act and the European Market Infrastructure Regulation (EMIR). [3]

Equity Derivatives Cashflow Matching Service [4] The ECM is an automated over-the-counter (OTC) equity derivatives cashflow matching and netting service. The service allows for counterparties to standardize their cashflow matching process and thus create more timely settlements.

The matching process reconciles the details of the paying party’s payment, such as the amount, currency and date, with the details of what the payee expects to receive, and also reconciles selected details of the underlying derivative trade. Through netting, counterparties consolidate multiple payments owed between each other on multiple contracts into a single payment.

References

  1. DTCC Deriv/SERV. DTCC.
  2. DTCC Chooses CLS Bank as Global Settlement Partner for OTC Derivatives Market. DTCC.
  3. DTCC GTR. DTCC.
  4. Equity Derivatives Cashflow Matching Service. DTCC.