TriOptima Goes Live With Verification and Reconciliation of OTC Data To DTCC

TriOptima, ICAP's post-trade risk management infrastructure division has today gone live with its data connectivity integration with DTCC's global trade

The corporate responsibility surrounding the necessary adaptation of infrastructure, in order to conform to international standards set out in the European Market Infrastructure Regulation (EMIR) portfolio reconciliation rules, along with the congruent regulatory framework within the Dodd-Frank Act continues as firms perform the required connectivity to repositories.

One such repository is the Depository Trust and Clearing Corporation (DTCC) which has announced today that data connectivity between DTCC Data Repository in the US has gone live with ICAP’s post-trade infrastructure division TriOptima.

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Back in June, it was announced that TriOptima was working toward supporting data verification and portfolio reconciliation of DTCC’s trade repository data as requested by triResolve clients’ for their OTC derivatives portfolios. TriOptima at the time stated that it would be the first portfolio reconciliation provider to directly receive DTCC repository data for this purpose.


The connectivity having now gone live, DTCC remains the only trade repository with such a connection to triResolve. DTCC’s global trade repository services are also the only solution provider that supports trade reporting in all 5 OTC derivatives asset classes with all major dealers, and 600 other market participants from around the world registered to use its services.

Having gone live with said connectivity within three months of the initial announcement, ensuring compliance with the Commodity Futures Trading Commission (CFTC) mandated reconciliation deadline of August 23 could be facilitated.

Building on Existing Data Store Experience

Raf Pritchard, CEO of triResolve spoke to Forex Magnates today, in order to detail the operational aspects behind establishing the connection with DTCC. Mr. Pritchard explained that “TriOptima had a link to Credit Warehouse, which is one of the early data stores to have been established, for a number of years.”

“This existing connection enriches and strengthens cross referencing with electronic data stores. As that particular connectivity was already in place, it was a logical progression to go to DTCC once trade repositories came about as a result of regulation. The instruments being sent to trade repositories are all individual asset classes and therefore we saw it as an opportunity to perform reconciliations brought about by regulatory requirements.”

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DTCC and TriOptima anticipate that their collaboration can also be extended to market participants in Europe, where portfolio reconciliation and trade reporting rules will come into effect imminently. The European Market Infrastructure Regulation (EMIR) portfolio reconciliation rules will come into effect on September 15, 2013 and EMIR mandatory trade reporting will begin on January 1, 2014.

Mr. Pritchard expanded on the subject of deadlines set by the regulatory authorities, insofar as: “There has been a lot of fluidity with regard to the US deadline date”.

“It was originally scheduled for the end of last year, but was subsequently deferred until July 1. We were expecting that to be the final date, then at the eleventh hour they provided more relief. The final date was then moved to Aug 23. We are very happy that we had the functionality completed in time.”

The preparation and implementation of the infrastructure required to comply with trade reporting regulations set out in the Dodd-Frank Act and EMIR could be a source of concern for firms, as it carries a cost. Mr. Pritchard explained triResolve’s corporate strategy relating to ensuring that an efficient cost model is maintained: “That’s a question for the whole industry” Mr. Pritchard explained to Forex Magnates.

Reconciliation as a Central Service

“I think there are two key points here. Firms are reusing existing infrastructure which is why this link is so key because it connects to existing reconciliation functionality. Also automation is a key strategy. Firms have been doing reconciliation for some time, but we provide a tool that does it as a central service and therefore parties have a consistent reconciliation result between the two sides of the trade and a central platform over which they can conduct any risk mitigation or resolution across both sides of the trade.”

Marisol Collazo, US CEO for DTCC Data Repository added to this in a company statement today.“Our cooperation with TriOptima enables DTCC to offer its participants the ability to meet their portfolio reconciliation requirement, leveraging the same submission used to meet their trade reporting obligation.”

“Clients are now well positioned to manage and reconcile their derivatives positions efficiently. We are committed to working with complementary third party service providers like TriOptima, so our mutual clients have greater and more efficient access to our services which help them effectively meet their regulatory mandates globally” concluded Mr. Collazo.

Mr. Pritchard further added on behalf of triResolve: “We are delighted to now have live repository data directly feeding our reconciliation service.”

“This both contributes to data accuracy and creates opportunities for efficient workflow for industry participants, including performing regulatory reconciliations. We believe that this kind of cooperation and interconnectivity is the way forward for post trade services.”

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