DTCC has introduced a new service that provides real-time access to over-the-counter (OTC) derivatives transaction data via cloud technology. The new offering, called OTC Direct Connect, is aimed at investment professionals, data providers and business support teams active in the derivatives markets.
According to the company’s official statement, OTC Direct Connect aims to streamline the management of market and trading risk factors. It provides a solution to eliminate manual data collection methods. The agency promises improved transparency in the OTC derivatives markets, in line with regulatory disclosure mandates.
Tim Lind, Managing Director of DTCC Data Services, said: “This solution systematically and seamlessly distributes OTC derivatives transaction data to interested parties. OTC Direct Connect improves transparency in the OTC derivatives markets, as intended by regulatory disclosure mandates, by providing subscribers with enhanced access to information.”
DTCC’s OTC Direct Connect aims to transform the handling of OTC derivatives transactions. It gives subscribers real-time access to crucial market data, allowing them to better manage the risks associated with trading activities. The elimination of manual data collection methods is a significant benefit as it provides scalability and automated access to DTCC’s published data on the Public Price Dissemination Dashboard.
We have launched a new service, OTC Direct Connect, which will leverage cloud technology and streamline access to OTC derivatives transaction data to help eliminate manual data collection methods.
Read more: https://t.co/jEax5clcRi pic.twitter.com/iPBWzujOrU
— DTCC (@The_DTCC) November 8, 2023
In addition, the service improves market transparency as required by regulatory disclosure mandates, providing subscribers with improved access to information. Subscribers receive data through Amazon Web Services (AWS) via AWS Data Exchange. This makes it easy for them to find, subscribe to, and use third-party data in the cloud.
The integration of AWS Data Exchange with other AWS services, such as Amazon S3, Amazon Athena, and Amazon Redshift, streamlines data storage and integration into their systems and applications. The launch of OTC Direct Connect complements DTCC Data Services’ offering, reinforcing DTCC’s commitment to delivering reliable and innovative solutions to the financial services industry.
Evolving landscape of OTC derivatives regulation
The regulation of OTC derivatives is gaining ground worldwide. In September, Canadian securities regulators introduced a comprehensive rule to regulate OTC derivatives for dealers and advisors. This new rule, which is aligned with international standards, aims to promote transparency, accountability and ethical practices in the OTC derivatives market in Canada.
The recently adopted rule imposes substantial responsibilities on OTC derivatives traders and advisors. These obligations include mandates related to fair dealing, managing conflicts of interest, reporting non-compliance and maintaining accurate records. This framework is a critical step toward ensuring the integrity of the OTC derivatives market.