Tuesday, July 1, 2014

Swap Data Repository - Cleared Swaps and Implications

In the wake of financial crisis of 2008, we have seen huge amount of regulation to restrain Derivatives trading. Dodd Frank act started taking aim at every aspect of trading that might lead to another crisis. As a part of this act, Dealers are now required to report every OTC (over the counter) trades to Trade repositories at DTCC and Bloomberg.
This kind of real time reporting has broad implication to the financial market participants. Some of the technology firms have started taking aim at this kind of data and started organizing them. Notably, Data solution from Gatick Global provides real time market intelligence and trends.
For instance regulators or consulting teams can view the market share by product in major currencies (USD, EUR, GBP and JPY)

This will tell them which product is trading more on the market and how much volume is outstanding.
Next if you want to see if market players are trading bilaterally or on the Swap exchange facilities, once can look at the chart pertaining to

Most importantly, if you want to know what trade has been done at what maturity and what level it got cleared just try this link
http://derivdata.gatick.com/transaction-data-visualizations/usd-swaps/
This will give you a view of the market flow which is key to any trading activity.
Now you can say, alright, I know product trends, that which product has larger share and product clearing levels that is which product is trading at what price. You can look at the real time market Yield curves, volatility surfaces that are just available to only few players. Gatick Global provides market data generated from Transaction prices.
http://derivdata.gatick.com/usd-yield-curve/

So think of a situation when, you have access to real time, transaction prices, underlying yield curves and volume trends at your press of enter key. all You have to worry then is to use this see clearly which direction market is trending.
with best regards
chandra

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