The Depository Trust & Clearing Corp has launched an enhanced DTCC CDS Kinetics platform to support growing demand for greater transparency into the credit default swaps (CDS) market within the over-the-counter derivatives space.
DTCC CDS Kinetics which provides position data on CDS from DTCC’s Trade Information Warehouse (TIW), has notional outstanding, net notional, and trading volume metrics on securities including single-name, index, and index tranche.
TIW is a centralised infrastructure for reporting and asset servicing on approximately 98% of all credit derivative transactions outstanding worldwide.
CDS Kinetics service has been enhanced to support increased analysis and understanding of the CDS given that they are a critical data source for understanding market risk.
The service, which previously featured point-in-time snapshots of the CDS market, has been upgraded to provide over 10 years of historical and time-series data as well as a new user interface with graphical representations.
It also offers the ability to search for CDS instruments by a range of attributes including underlying reference entity, market sector, market type, and geographical region.
“The new DTCC CDS Kinetics platform provides unparalleled transparency into the credit default swaps market, offering unique insights on credit risk that will not only inform trading strategies, but will also help banks better prepare for potential market dislocations,” says Tim Lind, Managing Director of DTCC Data Services.
He adds, “Now more than ever, it’s critical for firms to begin drawing upon more robust and higher-quality data sources to heighten their risk preparedness and response, as well as their overall business resilience.”
The DTCC CDS Kinetics platform will also be made available in DTCC’s API Marketplace, as part of a planned future platform update.
The API “App Store” allows direct programmatic access to DTCC processing functionality and includes comprehensive documentation and training materials to help developers use the APIs.
“We worked closely with clients to develop the new API capability, which will allow users to leverage DTCC’s technology to suit their own business needs,” says Lind.
©Markets Media Europe 2021