Trade repositories collect and maintain records of derivatives trades, with the aim of helping regulators monitor the build-up of systemic risk. In 2009 in Pittsburgh, Group of 20 leaders agreed that all standardised over-the-counter derivatives should be reported to trade repositories. In the European Union, all buyers and sellers must report all derivatives deals – OTC and exchange-traded – to trade repositories. In the US, the reporting obligation applies only to OTC derivatives and not always to both counterparties. The US equivalent of a trade repository is a swap data repository (SDR). Reportable derivatives in the US include “swaps” – defined as interest rate swaps, foreign exchange swaps and forwards, index-based credit default swaps, agricultural and commodity swaps, index-based total return swaps and all options based on a rate or commodity – and “security-based swaps”. SDRs are also used in the US for the purposes of post-trade transparency.
TRADE REPOSITORY
