OpenLink Financial LLC (OpenLink), provider of cross-asset trading, risk management and operations processing software solutions, announced today plans to expand its suite of Dodd-Frank Regulatory Compliance solutions with ICE Trade Vault Swap Data Repository (SDR) reporting capabilities.
This solution will enable commodity and energy market participants to comply with U.S. Commodity Futures Trading Commission (CFTC) SDR reporting requirements resulting from the Dodd-Frank Wall Street Reform and Consumer Protection Act.
"The combination of ICE Trade Vault and OpenLink will allow global market participants to benefit from our functionality and compliance tools, helping them manage new reporting requirements through a well-designed, cost-effective solution," said Bruce Tupper, President of ICE Trade Vault.
OpenLink's SDR solutions are a key part of the firm's suite of Dodd-Frank Regulatory Compliance solutions and will support reporting of CFTC required swap data including, primary economic terms (PET), confirmation, continuation and valuation data.
Phil Wang, SVP of Product Management at OpenLink, said, "We are pleased to continue our strong partnership with ICE by expanding our connectivity solutions to facilitate SDR reporting to ICE Trade Vault."
The Dodd-Frank Wall Street Reform and Consumer Protection Act makes significant changes to regulation of the U.S. over-the-counter (OTC) derivatives market, with the goals of improving transparency, reducing systemic default risk and promoting market integrity. OpenLink is dedicated to addressing the new reporting requirements this regulatory regime imposes on the financial, commodity and energy markets.
As part of the implementation of Dodd-Frank, market participants have regulatory reporting obligations to submit trade data on swap transactions to SDRs. SDRs are new entities created by the Dodd-Frank Act to provide a central facility for swaps data reporting and recordkeeping. All swaps, whether cleared or uncleared, are required to be reported to registered SDRs. ICE Trade Vault is currently the only approved SDR by the CFTC for the commodity and energy, interest rate swaps, credit default swaps (CDS) and foreign exchange (FX) asset classes.
On July 3, 2013, the courts pronounced caveat emptor with respect to execution performance in the FX market. U.S. District Judge Denise Cote threw out a lawsuit, which accused JPMorgan Chase & Co. of breaching a fiduciary duty to custodial clients by charging “hidden and excessive mark-ups” on currency trades. Judge Lewis Kaplan dismissed a lawsuit directed at officials of Bank of New York Mellon, for ignoring “red flags” or knowing that trades were being processed at the worst or near-worst prices of the day.
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