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The Depository Trust & Clearing Corporation

How DTCC Helped Simplify Trade Reporting Activities for Financial Services Firms

Building the world’s leading pre-and post-trade reporting platform.

The Depository Trust & Clearing Corporation (DTCC) is the premier market infrastructure for the global financial services industry, providing pre- and post-trade reporting for derivatives and securities globally.

In response to the growing regulatory pressures following the 2008 financial crisis, they introduced the DTCC Report Hub to address the multiple reporting tasks mandated by the new rules. And when DTCC expanded to cover derivatives reporting, they turned to Publicis Sapient to help deliver a unified pre- and post-trade reporting platform.

The Imperative for Change

As transaction reporting regulations have been introduced and repeatedly expanded over the past decade since the financial crisis, they have taxed firms’ internal operations, processes, governance and infrastructure. The lack of harmonized derivatives rules across jurisdictions has further complicated firms’ compliance challenges.

The market’s need for a suite of pre- and post-reporting services that can help alleviate the burden on in-house technology and staff – as well as increase operational efficiencies and drive down costs – first became obvious a few years ago. Staff were tasked with building and supporting complex systems to meet the periodically changing regulatory requirements of both derivatives and securities financing transaction reporting mandates.

From that point on, DTCC started to create a single platform to perform all pre-and post-transaction reporting tasks for clients, not only across asset classes but also across regulatory regimes. That platform is the DTCC Report Hub.

The first step in the DTCC Report Hub journey was to offer clients who were preparing to report under Securities Financing Transaction Regulation (SFTR) a way to help manage the data complexities of the mandate. In 2020 as the regulation was set to go live, DTCC successfully rolled out DTCC Report Hub for SFTR. The logical next step was to introduce the pre-and post-reporting capabilities for global derivatives reporting.

“CMRS is an established platform that, when integrated with the DTCC Report Hub service, will provide the industry with a proven pre and post reporting service that offers unrivalled asset and jurisdictional coverage.”
Chris Childs
Chris Childs, Managing Director, Head of Repository & Derivatives Services, DTCC
The Transformative Solution
 

Publicis Sapient engineered the Compliance Management Reporting System (CMRS) in 2012 to act as an accelerator, and we’ve seen the platform develop a proven record of successfully supporting adherence to ever-evolving global reporting regulations.

In late 2020, DTCC announced its acquisition of CMRS, with the plan to integrate it with the DTCC Report Hub service to provide an extensive suite of pre-and post-trade reporting capabilities with comprehensive jurisdictional and regulation coverage, including Markets in Financial Instruments II (MiFID II), and other mandates in the United States, Europe, Canada, Australia, South Korea (subject to implementation of final regulations) and Hong Kong, among others. Firms using the newly expanded DTCC Report Hub offering have the ability to manage derivatives, MiFID II, and Securities Financing Transaction Regulation (SFTR) pre-and post-trade reporting requirements via a single vendor platform, allowing them to mitigate compliance risks, enhance operational efficiencies and reduce costs.

DTCC Report Hub’s robust functionality and flexible integration provides firms with access to a wide range of pre-and post-trade reporting capabilities, including pre-reporting data normalization and exception management, assessment of reporting eligibility, automated reconciliation, and compliance analytics creation. The DTCC Report Hub service also interfaces with registered trade repositories (TRs) and approved reporting mechanisms (ARMs) to facilitate trade submission and approved publication arrangements (APAs).

Under the terms of the acquisition, Publicis Sapient serves as a strategic partner to DTCC by continuing to support, maintain and develop enhancements to the technology platform.

“Thanks to Publicis Sapient, the DTCC Report Hub now provides a proven pre- and post-reporting service that offers unrivalled asset and jurisdictional coverage.”
Chris Childs, Managing Director, Head of Repository & Derivatives Services, DTCC

The Business Impact

The DTCC Report Hub service now allows firms to manage all reporting – including derivatives, Markets in Financial Instruments II (MiFID II) and Securities Financing Transactions Regulation (SFTR) pre-and post-trade reporting – via a comprehensive platform. The combined trade reporting and consulting experience that DTCC and Publicis Sapient contribute to the existing technology platform creates a single, highly efficient, evolving, comprehensive reporting solution that will help clients manage the complexities of meeting multiple regulatory mandates across jurisdictions.

80%
market share for derivatives reporting (est.)
9,000
global trade reporting clients
15
jurisdictions covered by DTCC
Paul Gibson
Paul Gibson
Director - Strategy, Practices & M&A