DTCC Launches Treasury Kinetics Service to Enhance Transparency for Repo Trade Data

The Depository Trust & Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term Corporation (DTCC), a leading post-trade market infrastructure for the global financial services firms, has announced the launch of DTCC Treasury Kinetics today. DTCC launched the new service in order to provide access to trade data for US treasury securities as part of its efforts to enhance transparency in repo markets.

DTCC stated that the increasing volatility in the repo markets underpins the need for repo market players to have access to data that provides greater transparency and understanding of rates, valuation and liquidity.

The DTCC Treasury Kinetics service 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, settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term and netting for government fixed-income securities.

On average, FICC is reported to provide matching, settlement and netting for more than US$3 trillion per day.

DTCC said that the new service will offer a daily summary of aggregated, anonymized trade data such as the number of transactions, USD amounts and rates for delivery-versus payment (DvP) repo. Additionally, the service will provide historical data dating back to 2011, thus enabling users to back-test current repo trade data against previous events.

Moreover, DTCC disclosed that it plans to make DTCC Treasury Kinetics and its other data services available on cloud-based markets, beginning with Snowflake Data Marketplace which is planned to go live before the end of Q1.

Tim Lind, the Managing Director of DTCC Data Services, commented about the new service: “This new service meets a critical industry need: access to a single, comprehensive data source that provides greater insight into the U.S. repo markets. DTCC Treasury Kinetics delivers one of the most comprehensive views of the repo markets available today, providing increased transparency for investors and intermediaries.”

Simplifying Trade Reporting Activities for Financial Services Firms

Established in 1973, DTCC came into existence to improve security and reduce the rising volume of paperwork after the volume of securities transactions grew rapidly in the U.S. Since then, the major US firm continues providing derivatives and securities pre- and post-trade reporting activities for financial services companies.

In October 2018, DTCC partnered with five vendors, including Broadridge, FIS Global and SimCorp, to support financial services firms with reporting requirements under the Securities Financing Transactions Regulation (SFTR). In December 2020, DTCC acquired Publicis Sapient’s compliance management and reporting system to enhance its pre- and post-trade reporting services to reach the global market.

Recently, DTCC partnered with Ebix, Inc, a leading international supplier of on-demand software and e-commerce services, to deliver an automated annuity compliance solution to significantly increase efficiency, reduce costs and minimize the risks associated with certifying agent compliance for annuity sales.