Public policy benefits of trade repositories

The primary public policy benefits of a TR, which stem from the centralisation and quality of the data that a TR maintains, are improved market transparency and the provision of this data to relevant authorities and the public in line with their respective information needs. Timely and reliable access to data stored in a TR has the potential to improve significantly the ability of relevant authorities and the public to identify and evaluate the potential risks posed to the broader financial system (see Principle 24 on disclosure of market data by TRs). Relevant authorities, in particular, should have effective and practical access to data stored in a TR, including participant-level data, which such authorities require to carry out their respective regulatory mandates and legal responsibilities.

A TR may serve a number of stakeholders that depend on having effective access to TR services, both to submit and retrieve data. In addition to relevant authorities and the public, other stakeholders can include exchanges, electronic trading venues, confirmation or matching platforms, and third-party service providers that use TR data to offer complementary services. It is essential, therefore, for a TR to design its access policies and terms of use in a manner that supports fair and open access to its services and data (see Principle 18 on access and participation requirements). Another important benefit of a TR is its promotion of standardisation through the provision of a common technical platform that requires consistency in data formats and representations. The result is a centralised store of transaction data with greater usefulness and reliability than when the data are dispersed.

Central banks, market regulators, and other relevant authorities for TRs have a responsibility to mutually support each other’s access to data in which they have a material interest as part of their regulatory, supervisory, and oversight responsibilities, consistent with the G20 Declaration at the 2010 Toronto Summit.15 As market infrastructures continue to evolve, TRs may develop for a variety of products and asset classes both within and across particular jurisdictions, and cooperation among authorities will become increasingly important (see Responsibility E on cooperation with other authorities). Efforts should be made to remove any legal obstacles or restrictions to enable appropriate, effective, and practical access to data by relevant authorities, provided such authorities are subject to appropriate confidentiality safeguards.

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