DTCC Deriv/SERV is the leading provider of automation solutions for the global, over-the-counter (OTC) derivatives market. We offer a family of services that brings greater efficiency and reduces the risk of processing a wide range of credit, equity and interest rate derivatives products.
At a time of phenomenal growth in the OTC derivatives market, DTCC has leveraged its technology and experience to respond to the market's concerns about risk and high processing costs. Since launching a matching and confirmation service for credit default swaps (CDS) in late 2003, DTCC has aggressively expanded Deriv/SERV.
We've broadened the range of OTC derivatives products supported, rolled out several new services, and expanded our community of customers globally. Today, all major global derivatives dealers and 800+ buy-side firms, including investment managers and hedge funds, use Deriv/SERV. We have more customers than any other service provider in the OTC derivatives market.
Our line of services includes:
AffirmXpressTM is a single-screen post-trade affirmation platform that lets front-office and operations staff efficiently review and affirm OTC derivatives trades from multiple inter-dealer brokers (IDBs).
Deriv/SERV's Matching and Confirmation Service automates the legal confirmation process for OTC derivatives, including credit, equity and interest rate derivatives. Today, more than 80% of credit derivatives traded worldwide are electronically confirmed with Deriv/SERV.
The Trade Information Warehouse is a centralized and secure global infrastructure for processing OTC derivatives over their life cycle, which could extend for years.
Large Global Community of Users: Our customers, from 30 countries, include all major global derivatives dealers, plus a rapidly growing number of investment managers and hedge funds.
Customer-Centric: DTCC develops solutions for the OTC derivatives market using a consultative, collaborative approach, working closely with dealers, buy-side firms and industry groups that have in-depth knowledge about complex market needs.
Breadth and Depth of Platform: Deriv/SERV delivers a fully-integrated, single gateway through which market participants can automate processing for a wide range of OTC derivatives products. To keep pace with the market's innovation, we regularly add new credit, equity and interest rate derivative instruments for matching and confirmation.
At-Cost Pricing: DTCC operates for the sole benefit of our customers on an "at cost" basis, returning excess revenue from transaction fees to customers. DTCC drives down costs through economies of scale, critical mass and a continuing focus on containing costs and process management.
Trusted Service Provider: DTCC has an outstanding reputation for reliability, certainty and trust with more than 30 years experience guarding the privacy of trade data. In 2006, DTCC supported the trading and settlement of more than $1.5 quadrillion in securities transactions.
Quick to Market: DTCC has been quick to respond and roll out innovative solutions to meet the OTC derivatives market's needs for automation, operational efficiency and risk mitigation. DTCC brought the Deriv/SERV platform to market in nine months, while the Warehouse was built in an aggressive 10-month timeframe.
Flexible Technology Options: To minimize our customers' costs to access Deriv/SERV, we offer customers several ways to connect to DTCC, including a computer-to-computer interface for high-volume users, real-time spreadsheet uploads via the Web, and an online Web application with workflow management tools.
Unparalleled Resiliency and Security: DTCC, which has a critical role ensuring the safety, certainty and soundness of the capital markets, has an extensive, state-of-the-art business continuity program. This includes a fully redundant, self-healing telecom network, multiple data centers and operating sites, and innovative data replication technology.
Strategic Partners: To extend the reach of our services and lower connectivity and integration costs for customers, DTCC actively pursues strategic partnerships with OTC derivatives service providers globally. Deriv/SERV's open architecture facilitates integration with a growing number of providers offering complementary services.
Reduces Operational Risk through greater transparency of contract terms confirmed through Deriv/SERV and housed in the Warehouse.
Greater Operational Efficiency by eliminating laborintensive, paper-based confirmations and complicated bilateral reconciliations between counterparties.
Increases Accuracy and reduces processing errors, discrepancies and delays through automation.
Lowers Operational Costs through streamlined, industry-standard, automated processing.
Greater Payments Accuracy based on the most current contract records, along with the capability to easily track and identify payments flows.
The OTC derivatives market, particularly for credit derivatives, has rapidly expanded as these products have gained wide acceptance. Growth is accelerating globally in terms of trading volume, new product types and new market participants.
Concerns about transparency, risk and high processing costs have led to many recent innovations in trade capture, confirmation and processing systems and practices. While the industry continues to increase its automated trade confirmation rates, market participants are now focused on ensuring accurate records and keeping up with the level of processing over the life of a contract. The Trade Information Warehouse addresses these operational challenges by automating and standardizing reconciliation and post-trade processing.
Who Can I Contact?
For more information, contact Deriv/SERV Relationship Management:
New York: +1 212 855 2027
London: +44 (0) 20 7650 1410