My TIW reflection University of Maryland Writing Project Summer Institute 2010 Min-Ah Kang.
Tiw Overview
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Transcript of Tiw Overview
8/3/2019 Tiw Overview
http://slidepdf.com/reader/full/tiw-overview 1/2
What is the Trade Inormation Warehouse?
The Warehouse comprises a robust inrastructure that
provides market participants across the globe with a wide
range o automated operational capabilities. It also oers
tailored solutions that allow customers and third-party
service providers to subscribe to the relevant service that
meets their specifc needs. The Warehouse comprises a:
Trade Reporting Repository that operates and maintains
the centralized global electronic database or virtually all
CDS contracts outstanding in the marketplace. The reposi-
tory maintains the most current credit deault swap (CDS)
contract details on the ocial legal, or gold record, or
both cleared and bilateral CDS transactions.
The repository also stores key inormation on market
participants single-sided, non-legally binding, (reerred to
as “copper” records), CDS transactions to help regulators
and market participants gain a clearer and more complete
snapshot o the market’s overall risk exposure to OTC
credit derivatives instruments.
DTCC also provides weekly reports on its website, www.dtcc.com, on current and historical data on the notional
amounts o contracts outstanding and contract turnover
on “gold” records. Reporting on Copper records is pro-
vided only to regulators coincident with their authority.
In establishing the Warehouse Trust Company as a
regulated entity, our aim is to ensure that regulators,
wherever they are located, have unettered access to
the inormation they need to assess risk exposure in the
global market, and that industry participants have the
assurance o that regulatory oversight over the critical
inrastructure that supports the market activities.
Lifecycle Event Processing provides a wide array o auto-
mated services or recorded contracts, including:
• Payment calculation and bilateral netting: The Ware-
house calculates payments on all “gold calc” confrmed
CDS contracts and creates real-time bilateral nets or
each currency.
• Event processing: The Warehouse provides a compre-
hensive electronic service that automates liecycle pro-
cessing or successor events such as reorganizations andrenaming o corporate entities and credit events such
as bankruptcies, restructurings and insolvencies. As o
December 30, 2009, DTCC seamlessly completed process-
ing or 50 credit events this year including the General
Motors bankruptcy, reported as the largest in industrial
history. The Warehouse also successully completed one
active restructuring event and 129 successor events so
ar this year.
• Central Settlement: In partnership with CLS Bank
International, DTCC provides central, automated settle-
ment o payments or contracts processed through the
Warehouse’s Central Settlement service.
Who can use the service?
The Warehouse’s customer base includes all major global
derivatives dealers and more than 1700 buyside frms and
other market participants located in 52 countries. The
Warehouse acilitates processing or third party solution
providers such as central counterparties, portolio com-
pression and custodian banks.
The Trade Inormation Warehouse (Warehouse) is the market’s frst and only centralized global repository or
trade reporting and post-trade processing o OTC credit derivatives contracts.
As o March 2010, the Warehouse Trust Company LLC (a newly ormed subsidiary o DTCC) will be the regulated
operator o the Warehouse. It’s regulation is an important step orward in urthering regulatory and industry
objectives to bring greater transparency and added risk mitigation to the global OTC credit derivatives market.
The Depository Trust & Clearing Corporation
DI/TAD IOMATIO WAO
8/3/2019 Tiw Overview
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Benefts
Increases market transparency by providing public and
regulatory reporting to ensure that risk can be viewed
rom a central vantage point through a global repository.
Reduces operational risk and increases eciency
by automating and centralizing the maintenance o posi-
tion data and supporting a range o post-trade processing
requirements rom a single location.
Promotes accuracy and comprehensiveness based on the
most current position records, and acilitates tracking o
payment ows between frms.
Helps frms simpliy management o credit events
by eliminating ad hoc reconciliation and supporting In-
ternational Swaps and Derivatives Association’s (ISDA) Big
Bang and Small Bang protocols.
Cost savings
Standardizes and automates post-trade processing o pay-
ments and events over a contract’s lie.
Reduces the number o cash movements by streamlining
the payment process or bilateral contracts through the
Warehouse’s central settlement service. The service sig-
nifcantly reduces operating risks or users by replacingmanually processed bilateral payments with automated,
netted payments.
Increases eciency o portolio management tools and
processes.
or more inormation
Please visit www.dtcc.com.
This description is for informational purposes only. 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.