TriOptima tool targets OTC derivatives reporting business
As new rules governing the central reporting of OTC derivatives take effect across the G20 nations, TriOptima, a subsidiary of broker ICAP, has said it will verify and reconcile OTC derivatives data from US post-trade utility the DTCC’s trade repository – making it the first provider to do so.
TriOptima’s tool for verifying and reconciling the data is called triResolve. It already connects to the DTCC trade information warehouse, Market Serv, SGX, and LCH SwapClear -of which the latter two clear OTC derivatives while the former hold information. The idea is that linking to the DTCC’s trade repository will help TriOptima to assist clients to verify and reconcile transactions submitted to the repository by market participants.
“Assisting our clients with verification and reconciliation of portfolio data submitted to DTCC trade repositories is a significant development,” said Raf Pritchard, chief executive at TriOptima’s triResolve business. “Making repository data directly available to the reconciliation process contributes to data accuracy and creates opportunities to combine workflows and simplify operations. Given the rapid pace of change in the market, TriOptima’s strategy is to connect to multiple platforms across the OTC derivatives landscape including central clearinghouses, confirmation platforms, repositories, and other emerging providers of trade processing and data store functionality.”
Mandatory reconciliation will be required in the UK and EU from 15 September. In the US, the deadline is 1 July. Reporting for OTC derivatives is part of a broader drive endorsed by the G20 nations in 2009 intended to increase transparency and reduce systemic risk for complex and poorly-understood derivative instruments, which have been partially blamed for the financial crisis.