DTCC targets data transparency for repo markets
16 February 2022 US
Image: AdobeStock/photoopus
The Depository Trust and Clearing Corporation (DTCC) has launched a new service that provides access to trade data for US treasury securities in a bid to extend transparency in repo markets.
This solution, named DTCC Treasury Kinetics, will access US treasury transaction data held by the government securities division of the Fixed Income Clearing Corporation (FICC), DTCC’s subsidiary that provides trade comparison, netting and settlement for government fixed income securities.
On average, FICC provides matching, netting and settlement for more than US$3 trillion per day.
DTCC indicates that this new service will provide a daily summary of aggregated, anonymised trade data, including the number of transactions, USD amounts and rates for delivery-versus payment (DvP) repo. This will provide historical data going back to 2011, enabling users to back-test current repo trade data against past events.
DTCC plans to make DTCC Treasury Kinetics and its other data services available on cloud-based markets, starting with Snowflake Data Marketplace which is scheduled to be live before the end of Q1.
Commenting on the new service, managing director of DTCC Data Services Tim Lind says: “DTCC Treasury Kinetics delivers one of the most comprehensive views of the repo markets available today, providing increased transparency for investors and intermediaries. This new service meets a critical industry need: access to a single, comprehensive data source that provides greater insight into the US repo markets.”
As repo markets have continued to evolve, DTCC believes that rising volatility in the sector underpins the requirement for repo market participants to have access to data that provides greater transparency and understanding of valuation, rates and liquidity.
In October, DTCC published a white paper promoting the case for extension of central clearing for US treasury securities. FICC currently provides a range of client clearing models for US treasury cash securities and repo transactions, including correspondent clearing, prime broker clearing and sponsored clearing via the FICC sponsored-clearing service.
This solution, named DTCC Treasury Kinetics, will access US treasury transaction data held by the government securities division of the Fixed Income Clearing Corporation (FICC), DTCC’s subsidiary that provides trade comparison, netting and settlement for government fixed income securities.
On average, FICC provides matching, netting and settlement for more than US$3 trillion per day.
DTCC indicates that this new service will provide a daily summary of aggregated, anonymised trade data, including the number of transactions, USD amounts and rates for delivery-versus payment (DvP) repo. This will provide historical data going back to 2011, enabling users to back-test current repo trade data against past events.
DTCC plans to make DTCC Treasury Kinetics and its other data services available on cloud-based markets, starting with Snowflake Data Marketplace which is scheduled to be live before the end of Q1.
Commenting on the new service, managing director of DTCC Data Services Tim Lind says: “DTCC Treasury Kinetics delivers one of the most comprehensive views of the repo markets available today, providing increased transparency for investors and intermediaries. This new service meets a critical industry need: access to a single, comprehensive data source that provides greater insight into the US repo markets.”
As repo markets have continued to evolve, DTCC believes that rising volatility in the sector underpins the requirement for repo market participants to have access to data that provides greater transparency and understanding of valuation, rates and liquidity.
In October, DTCC published a white paper promoting the case for extension of central clearing for US treasury securities. FICC currently provides a range of client clearing models for US treasury cash securities and repo transactions, including correspondent clearing, prime broker clearing and sponsored clearing via the FICC sponsored-clearing service.
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