New York State Banking Board Approves Application for Central Trade Repository for Credit Default Swaps
Expands Regulatory Oversight of Credit Default Swap Market
November 6, 2009
New York, N.Y.: On Thursday, Nov. 5, the Banking Board approved an application to form The Warehouse Trust Company LLC (Warehouse Trust) as an uninsured limited purpose limited liability trust company that is a wholly-owned indirect subsidiary of The Depository Trust & Clearing Corporation (DTCC). Warehouse Trust will assume portions of the business of DTCC’s Deriv/SERV subsidiary as a repository for trade information about credit default swaps (CDS).
As a trade information repository for CDS, Warehouse Trust will receive and hold transaction details on credit default swaps in which its members are parties, and it will provide post-trade processing services. Finally, it will provide position reports to users, aggregate market information to the public and market and position information to regulators.
“I am pleased that DTCC has decided to submit Warehouse Trust, the central repository for the global over-the-counter credit derivatives market, to regulatory oversight. The information it has agreed to provide to regulators will enhance the transparency of the CDS market to regulators and assist their oversight of both the market and market participants,” said Richard H. Neiman, Superintendent of Banks for New York State.
Approval of related applications is pending from the Federal Reserve.
Upon completion of organizational steps and when certain other conditions have been met, the Superintendent will issue an authorization certificate to commence business.
The New York State Banking Department is the regulator for all state-chartered banking institutions, virtually all of the United States offices of international banking institutions, all of the State’s mortgage brokers, mortgage bankers, check cashers, money transmitters and budget planners. The aggregate assets of the depository institutions supervised by the Banking Department are more than $2.4 trillion.In addition to regulating banking institutions, the Banking Department is active in informing and educating all New Yorkers on banking matters. To contact the Banking Department, please call 1-877-BANK-NYS or visit our Web site at www.dfs.ny.gov.