REPOSITORYGLOBAL TRADE THE INDUSTRY’S CHOICE

FOR REGULATORY REPORTING

GTR is live

GTR global presence

Australia

Singapore

Hong Kong

Japan

Europe Canada

US

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In 2009, the G20 leaders – in response to the global financial crisis – agreed on a number of principles to govern the derivatives markets. Among these was the requirement that derivatives contracts should be reported to trade repositories.

The Depository Trust & Clearing Corporation (DTCC) has been at the forefront of the development of trade repositories, building global capabilities across the spectrum of asset classes. Today, its Global Trade Repository (GTR) spans three continents, enabling users to meet their regulatory reporting obligations in an open, cost effective and efficient manner via a single platform.

Financial markets and services will continue to innovate in response to new regulations and changes in market structure. In this ever-evolving environment, DTCC is uniquely positioned to lead the industry in a new direction and to resolve some of the top operational challenges facing financial institutions.

This document outlines the benefits of the GTR and how firms can use the platform to meet increasing regulatory obligations in the derivatives markets.

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With over 40 years of experience, DTCC is the premier post-trade market

infrastructure in the world.

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DTCC, through its subsidiaries, is the leading post-trade market infrastructure in the financial services industry, standing at the center of global trading activity.

DTCC has built a global infrastructure and portal to provide trade reporting to multiple regulators, in multiple formats across multiple jurisdictions. Originally created in 2006 as an asset servicing platform for credit default swaps contracts, the GTR has been leveraged in recent years to provide an unprecedented degree of transparency to derivatives markets.

Industry bodies – the International Swaps and Derivatives Association (ISDA) and the Association for Financial Markets in Europe (AFME) – selected the GTR as the preferred platform for interest rate, credit, equity, commodity and foreign exchange (FX) derivatives. These decisions were based on three pillars: DTCC’s experience and expertise, the open access nature of GTR, and DTCC’s history of collaboration with a wide spectrum of players in the industry.

Experience

For 40 years, DTCC has played a critical role in reducing risk and protecting the global financial system, while delivering cost efficiencies and innovative post-trade solutions to meet the ever-evolving needs of clients.

In the global derivatives markets, DTCC provides services including data collection, event maintenance and aggregation for 99% of credit derivatives transactions traded globally. Additionally, the GTR supports the voluntary contribution of data from the G16 for interest rate derivatives and the G15 for equity derivatives.

DTCC’s governance structure is based on the active involvement of user shareholders, who represent firms from across the globe. DTCC’s board is composed of 19 directors, of which 12 represent broker-dealers, banks, and investment institutions.

An open access approach

DTCC believes in choice: the GTR is based on a truly horizontal model, providing clients with neutral and independent open access. Users can report transactions to the GTR, irrespective of where they trade or clear. This choice enables them to meet reporting requirements in multiple jurisdictions through one single portal. Local customers and regulators have access to the data and processing capabilities of the GTR using their own infrastructures.

The GTR provides open access by allowing parties to a trade and third party providers to report directly. This includes:

− Parties to the trade (brokers, banks, asset managers, corporates etc.) −Electronic execution platforms (exchanges, Swap Execution Facilities (SEFs), Organized Trading Facilities (OTFs), Designated Contract Markets (DCMs)) −Clearing houses (CCPs) and Derivatives Clearing Organizations (DCOs) −Confirmation providers −Intermediaries (i.e. Interdealer brokers) −Custodians and asset servicers −Any other middleware providers

Collaboration

To meet the operational and regulatory needs of the global derivatives marketplace, DTCC has collaborated with regulators and leading financial institutions, combining its trade repository know-how with specialist expertise in different asset classes. In interest rate, credit and equity for example, DTCC has worked with MarkitSERV, the post-trade processing and workflow provider, to develop reporting services for the industry and with EFETnet for commodities. Likewise, in FX, DTCC is working with post-trade solutions provider, Traiana.

Moreover, we work with our user community and with regulators to build the most appropriate models to comply with regulation and user governance requirements. The robustness and safety of the resulting infrastructure protects client data and respects the confidentiality of that data.

Our utility, non-commercial model works for the interests of users and of the market as a whole.

Parties to the trade (brokers, banks, asset managers, corporates

etc.)

Electronic execution platforms (exchanges,

SEFs, OTFs, DCMs)

CCPs and DCOs Confirmation providers

Intermediaries (Interdealer brokers)

Custodians and asset servicers

Any other middleware providers

EuropeEuropean Securities &

Markets Authority(ESMA)

USCommodity Futures

Trading Commission(CFTC)

USSecurities

and Exchange Commission (SEC)

Hong KongHong Kong Monetary Authority (HKMA)

DTCC acting as an agent for HKTR

CanadaVarious regional regulators

Public Dissemination OTC Derivatives Regulators’ Forum (ODRF)

reporting

Japan Japan Financial Services Agency

(JFSA)

Singapore Monetary Authority

of Singapore (MAS)

Australia Australian Securities &

Investments Commission (ASIC)

GTR

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Our broad reach gives us a unique ability to develop solutions that secure and shape the future of the industry.

Reflecting the global nature of the derivatives markets, DTCC operates the GTR as a ‘one-stop-shop’ for all of the five derivatives asset classes – interest rate, credit, equity, commodity and FX – with fully redundant data centers in Europe, the US and Asia. This structure – the first of its kind – ensures that the service adheres to local regulatory requirements and that each region has control over and access to a global data set.

The GTR processes a multiple of current global volumes, replicates all transaction data in real-time to live sites on three different continents and enables regulated local access at each live site.

DTCC has established a number of companies to support various asset classes and jurisdictions:

DTCC Trade Repositories Asset Class Supported Jurisdictions Currently Supported

DTCC Data Repository (US) LLC(“DDR US” a US company)

Interest Rate, Credit, Equity, Commodity and FX Derivatives

US(CFTC approved)

DTCC Derivatives Repository Limited(“DDRL” a UK company)

Interest Rate, Credit, Equity, Commodity and FX Derivatives

ODRF reporting

Europe (ESMA approved)

Agency reporting for Hong Kong (agent services)

DTCC Data Repository (Japan) KK(“DDRJ” a Japanese company)

Interest Rate, Credit, Equity and FX Derivatives

(Commodity reporting not required under regulations)

Japan (JFSA approved)

DTCC Data Repository (Singapore) PTE Ltd(“DDRS” a Singaporean company)

Interest Rate, Credit, Equity, Commodity and FX Derivatives

Singapore (MAS approved)

Australia(prescribed by ASIC)

DTCC operates a non-commercial GTR for all of the five derivatives asset classes – Interest

Rate, Credit, Equity, Commodity and FX

Derivatives

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Our broad reach gives us a unique ability to develop solutions that secure and shape the future of the industry.

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Our market position gives us unique insights that foster ideas to manage risk, reduce costs and

create efficiencies.

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As a risk management instrument, derivatives play an important role in the global economy. A market of several hundred trillion dollars requires transparency, not only for the regulators tasked with macroprudential supervision, but also for the firms participating in it. Many buyside and sellside market participants and platforms can use the GTR, including but not restricted to:

−Parties to the trade (brokers, banks, asset managers, corporates etc.) −Third party providers who report on behalf of their clients, including:

−Electronic execution platforms (exchanges, SEFs, OTFs, DCMs) −CCPs and DCOs −Confirmation providers −Intermediaries (Interdealer brokers) −Custodians and asset servicers −Any other middleware providers

There are multiple ways to submit trade records to the GTR to provide maximum flexibility to firms, based on technology and volume considerations:

−Web-based, CSV upload/SFTP: usually preferred for small volume users −Web Services: geared for higher volume users −MQ (Message Queue): FpML submissions for large volume users − SWIFT

The GTR delivers heightened transparency. Participants see the trades they have submitted, as well as trades submitted by other parties where they are named as the counterparty; trades submitted by or against other legal entities for which they have been granted explicit permission to see; and certain trade attributes, such as internal trade references, trade valuation and trader identification are masked from counterparties.

The flexibility and versatility of the GTR, along with its global reach and status as a non-commercial industry co-operative, makes it the ideal platform to serve as a common processing solution to address key challenges facing many financial institutions.

Reducing processing costs

The GTR can help firms reduce their internal costs. Relying on a non-commercial, global entity to deal with your regulatory requirements will drive down costs through economies of scale and produce real savings for industry participants. Market participants can significantly reduce the cost burden of complying with derivatives regulations as the GTR enables them to build to one hub, from which data can be disseminated to the appropriate regulatory authorities.

As a risk management instrument, derivatives play an important role in

the global economy

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45 financial industry regulators worldwide have linked to DTCC’s portal. Based on this foundation, DTCC’s GTR provides regulators with an effective risk management tool, creating a unique, single view across borders that enables them to centrally oversee market participants and conduct market surveillance. As regulations are developed in each of the G20 countries, the portal will also facilitate reporting to meet the requirements of those regulatory regimes. Moreover, the framework can be extended to support the reporting of additional asset classes.

The GTR provides a single, and simple to use central point of access for users. The service is based on global derivatives standards such as the FSB standards for global LEI as well as ISDA product and trade identifier protocols. By working collaboratively with the market community, DTCC has been able to help encourage the adoption and use of standards for the benefit of the community as a whole. While regulators have access to a comprehensive data set for all entities and derivatives transactions within their jurisdiction, the GTR holds a global data set that spans geographical boundaries. As a result, it provides a central location to view and understand cross-border liquidity issues and trading activity as well as risk concentrations that may not be visible to a regulator in a particular region.

The GTR allows for enhanced data analysis that will enable supervisors to work more collaboratively to connect the dots between jurisdictions and understand how market activity in one region could affect financial stability in another part of the world. DTCC is focused on data security and protection; the data held within the GTR is protected and client confidentiality ensured. DTCC works with the OTC Derivatives Regulators Forum (ODRF) to develop and implement standards for data disclosure, ensuring appropriate data aggregation and anonymisation.

The GTR allows for enhanced data analysis

that will enable supervisors to work more collaboratively to connect the dots

between jurisdictions

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Our proactive and objective stance allows regulators and market

participants to meet the demands of an evolving marketplace.

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Our transparency provides better data, while our horizontal

model allows for open access, without conflict or prejudice.

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Does my firm need to report to DTCC for all asset classes?

No. Firms use DTCC’s GTR for regulatory reporting obligations on a single individual asset class, a subset of all asset classes, or as a complete solution for all domestic and global regulatory reporting requirements for all asset classes. If the firm uses the GTR for multiple asset classes, DTCC provides a reporting framework and messaging architecture which is common across all asset classes.

Who needs to report?

This depends on the regulation governing the reporting entity, for example Dodd-Frank or EMIR. DTCC has the capability to support any type of firm whether they are reporting directly or via a third party.

Does my firm need an LEI to report transactions to DTCC’s GTR?

This depends on the jurisdiction the reporting entity is subject to. For example, under Dodd-Frank and EMIR, each entity reporting transactions to a trade repository for CFTC or ESMA is required to have an LEI. A few organizations have been accredited to issue LEIs, one of them is the GMEI Utility. To register an LEI, please visit GMEIutility.org.

Is the repository for bilateral transactions only?

No. The GTR supports all derivatives trade execution types – both OTC and exchange-traded – regardless of method, including bilateral execution, brokered trades, and trades executed on an electronic platform. It also supports all transaction submissions whether electronically confirmed or paper confirmed as well as cleared or uncleared trades.

How does the GTR handle paper confirmations?

Clients can submit images of paper confirmation documents in a variety of formats. The document images are submitted with a small number of electronic fields that allow for search, retrieval, and permissioning/security, so that the full paper confirmation details can be viewed by all authorized parties depending on legal requirements.

How does reporting work between different countries with different regulatory jurisdictions or agencies?

When different regulatory jurisdictions are involved, the GTR utilizes participants’ regulatory identification on the inbound message to direct the records to the relevant trade repositories for regulator access to data.

How can my firm send messages to the GTR?

Users can connect to the GTR using a variety of technological interfaces. If connected, firms can use either DTCC’s proprietary Securely Managed and Reliable Technology (SMART) network or the BT Radianz network to submit records into the GTR. A direct MQ link is available to submit FpML messages and a Web Graphical User Interface is also provided to firms that wish to “Login and Upload” their trade data directly into the GTR via a CSV file upload. DTCC also provides Web Services functionality.

How can my firm receive information/reports from DTCC’s GTR?

The GTR provides daily pre-defined asset class specific reports. In addition to this, it employs a Business Intelligence Report interface that allows users to create customized reports and view the data they have submitted into the repository.

What are the different message types?

The following message types are supported to report to the GTR:

Real-time price data

Allows the firm to submit price data to comply with regulations, including Dodd-Frank. In addition to the real-time reporting message, which is required under Dodd-Frank, the GTR provides interfaces that enable firms to provide detailed trade economics and confirmation data to the GTR.

Position updates

Allows the firm to submit position updates using lifecycle methodology or end of day (snapshot) reporting.

Valuations

Allows the firm to report the valuation of a position previously sent to the GTR.

A valuation message is applied at the individual Unique Swap Identifier (USI) level.

Under EMIR, collateral information is also captured and maintained by the GTR. Collateral and valuation need to be reported by 11 August 2014.

Document

Allows the firm to submit a PDF version of the trade confirmation or any supporting documents to the repository along with a message that provides a minimal set of economic terms and identifying information.

Event processing

Allows the firm to provide data related to events which result in trade modification such as credit events, compression events, reorganization events, etc. This interface may be utilized by any third party event processing service (e.g. Trade Information Warehouse).

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What type of information is publicly disseminated?

Wherever we are required to, we have the capability to disseminate information. The GTR provides aggregate data reporting and real-time price reporting. The reporting is at an aggregate and anonymous level for the purpose of providing transparency of the size of the market, e.g. number of outstanding positions and notional amounts to the public at large – counterparty names are not disclosed.

Will my firm be identified in the public reporting?

No. Neither counterparty’s identity, nor the USI, are part of the real-time message publicly disseminated.

What is the difference between the lifecycle and snapshot position reporting?

The essential difference is that snapshot reporting allows for a daily, point-in-time report of the state of each contract within a firm’s portfolio. The lifecycle, or transaction-based approach, requires each discrete event to be reported individually. Thus, an individual contract (at any given point in time) can be constructed from the series of individual discrete events that have been reported.

Does the GTR provide reconciliation capabilities for parties to the trades?

Yes. The GTR produces data for aggregate positions, as well as transaction reports per participant, allowing each firm to reconcile their internal books and records to the positions held in the repository.

Who is able to see my transactions and positions?

Within my firm?

Firms wishing to connect to the DTCC’s GTR appoint one or more Super Access Coordinators (SACs), who submit forms detailing the level of access their firm requires to DTCC’s GTR onboarding team. SACs create individual accounts within their own firm and control the level of access each user account has.

Within specific third parties?

Any submitter of information into the GTR can view the data they have submitted. By default, a firm’s data is not viewable by any other third party unless it has explicitly granted such permission.

What about my counterparty?

Any counterparty that has onboarded to DTCC and has been named on a submission to the GTR can view the details of that particular submission. As there may be some fields associated with a trade which may contain private or sensitive internal information, these fields remain hidden from view.

Which regulators are able to access my information?

Regulators access trade data or reports based on permissioning logic maintained in the GTR account system. The criteria for permissioning vary depending on the supervisory authority.

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Europe and Middle East + 44 207 650 1545

Group email GTR-EMEA@dtcc.com

Asia Pacific and Japan + 81 3 6721 8876

Group email GTR-APAC@dtcc.com

Canada, North, Central and South America + 1 212 855 3531

Group email GTR-Americas@dtcc.com

For more information go to: http://www.dtcc.com/gtr

This description is for informational purposes. This Service is governed by applicable Rules, Procedures, and Service Guides for each DTCC subsidiary, which contain the full terms, conditions and limitations applicable to this Service. We may provide you with additional information about our products and services from time to time. If at any time you wish to be removed from our distribution list, please send an email to PrivacyOffice@dtcc.com.

To learn about career opportunities at DTCC, please go to dtcc.com/careers.

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