Cappitech launches Singapore derivatives reporting service through DTCC link

Cappitech has extended its end point network with DTCC to support Monetary Authority of Singapore (MAS) OTC derivatives reporting.

Cappitech has confirmed its launch of MAS OTC derivatives transaction reporting through a link with The Depository Trust & Clearing Corporation (DTCC).

The move follows US derivatives exchange CME Group confirming it would be winding down its regulatory reporting businesses later this year, alongside its European and Australian trade repositories.

“In light of the CME regulatory reporting services in Asia ceasing operations imminently, providing MAS reporting will be particularly appealing for clients who now need to find a new service for MAS reporting in a limited time frame,” said Cappitech chief executive and founder Ronen Kertis.

“MAS reporting brings challenges that firms that haven’t been under scope in the past for the first phases of OTC reporting will soon find themselves having to report. Soon an additional wave of both investment and non-investment companies will be required to report equity, commodity, and FX OTC trades which will require the implementation of procedures to format submissions, create matched UTIs and filter out any non-scope trades. These can easily be managed via our platform and will enhance the accuracy of reporting as well as reduce the effort and the likelihood of manual errors for MAS reporting.”

Investors and derivatives holders that fall under the scope of the MAS regulation can now use Cappitech’s transaction reporting technology to transform data and submit it to DTCC’s Global Trade Repository (GTR) service.

Cappitech confirmed in a statement that its connection with DTCC’s GTR service and other TRs/ARMS would expand its existing compatibilities and provide a single interface for EMIR, SFTR, ASIC, US, and Canadian reporting.

MAS reporting regulations cover OTC derivatives trades for interest rate, credit, FX, equity, and commodity derivatives contracts. The regulation was expanded in October 2019; however, its final phase is set for 2021.

“As the leading trade repository in the world, GTR is uniquely positioned to help clients achieve compliance with the MAS October 2021 deadline,” added head of GTR Asia at DTCC Oliver Williams.