The move comes ahead of the Monetary Authority of Singapore’s (MAS) finalized rules on mandatory over-the-counter (OTC) clearing and data reporting. MAS outlined plans to allow trades booked in Singapore to be reported to a foreign recognized overseas trade repository in a consultation released in February. Trade reporting is expected to be rolled out on interest rate, FX and oil derivatives by the end of the year.
Michael Bodson, president and chief executive officer at DTCC in New York, says the firm is aiming to help clients and regulators globally with transparency and risk mitigation.
“Our global trade repository services have played an important role in providing the public and supervisory authorities worldwide with a complete view of the market participants' risk exposures to OTC derivatives transactions,” he says.
The data centre in Singapore is expected to be operational in the second half of 2012.
MAS says it welcomes DTCC’s plans. “MAS expects trade repositories to maintain high standards of data integrity and confidentiality, and will establish an appropriate framework for regional and global regulators to request trade repository data based on internationally agreed principles,” states the regulator.
MAS is expected to finalize its guidelines soon, but has not set a timeline for its completion.