DTCC has introduced a new service offering real-time access to over-the-counter (OTC) derivatives transaction data through cloud technology. Dubbed OTC Direct Connect, the new offering caters to investment professionals, data vendors, and business support teams operating in the derivatives markets.

According to the company’s official statement, OTC Direct Connect aims to streamline the management of market and trading risk factors. It offers a solution to eliminate manual data collection methods. The service promises improved transparency in the OTC derivatives markets, in line with regulatory disclosure mandates.

Tim Lind, the Managing Director of DTCC Data Services, mentioned: “This solution systematically and seamlessly disseminates OTC derivatives transaction data to interested parties. OTC Direct Connect improves transparency in the OTC derivatives markets, as intended by regulatory disclosure mandates, by providing subscribers with improved information access.”

The Future of OTC Derivatives Management?

OTC Direct Connect aims to transform the handling of OTC derivatives transactions. It equips subscribers with real-time access to crucial market data, enabling them to manage risks associated with trading activities better. The elimination of manual data collection methods provides scalability Scalability Scalability is a term that describes the constraints of a network via hash rates to meet increased demand. In the context of Bitcoin, scalability reflects the issue in which a limited rate can process transactions adequately.Blocks within the Bitcoin blockchain are limited in both size and frequency. The overall transaction processing capacity of the network is dictated by the average block creation time of 10 minutes as well as a block size limit of 1 megabyte. Consequently, this leads to pain Scalability is a term that describes the constraints of a network via hash rates to meet increased demand. In the context of Bitcoin, scalability reflects the issue in which a limited rate can process transactions adequately.Blocks within the Bitcoin blockchain are limited in both size and frequency. The overall transaction processing capacity of the network is dictated by the average block creation time of 10 minutes as well as a block size limit of 1 megabyte. Consequently, this leads to pain Read this Term and automated access to DTCC’s published data on the Public Price Dissemination Dashboard.

We have launched a new service, OTC Direct Connect, that will leverage cloud technology and streamline access to OTC derivatives transactions data to help eliminate manual data collection methods.

Read more: https://t.co/jEax5clcRi pic.twitter.com/iPBWzujOrU

— DTCC (@The_DTCC) November 8, 2023

Besides that, the service improves market transparency as required by regulatory disclosure mandates, offering subscribers enhanced information access. Subscribers receive data through Amazon Web Services (AWS) via AWS Data Exchange. This allows them to conveniently find, subscribe to, and use third-party data in the cloud Cloud The cloud or cloud computing helps provides data and applications that can be accessed from nearly any location in the world so long as a stable Internet connection exists. Categorized into three cloud services, cloud computing is segmented into Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). In terms of trading, the versatility of the cloud service allows retail traders the ability to test out new trading strategies, backtest pre-existing conc The cloud or cloud computing helps provides data and applications that can be accessed from nearly any location in the world so long as a stable Internet connection exists. Categorized into three cloud services, cloud computing is segmented into Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). In terms of trading, the versatility of the cloud service allows retail traders the ability to test out new trading strategies, backtest pre-existing conc Read this Term.

AWS Data Exchange's integration with other AWS services, such as Amazon S3, Amazon Athena, and Amazon Redshift, streamlines data storage and integration into their systems and applications, DTCC stated. The launch of OTC Direct Connect adds to the array of DTCC's data services offerings.

Evolving Landscape of OTC Derivatives Regulation

The regulation of OTC derivatives is gaining traction globally. In September, the Canadian securities regulators introduced a comprehensive rule to regulate OTC derivatives for dealers and advisers. This new rule, aligning with international standards, aims to foster transparency, accountability, and ethical practices in the OTC derivatives market in Canada.

The newly adopted rule places substantial responsibilities on OTC derivatives dealers and advisers. These obligations include mandates related to fair dealing, conflict of interest management, reporting non-compliance, and maintaining meticulous recordkeeping. This framework is a crucial step towards ensuring the integrity of the OTC derivatives market.