How to use Trade Repository data on OTC derivatives for analysis – a practical framework
Conference
65th ISI World Statistics Congress 2025
Format: IPS Abstract - WSC 2025
Session: IPS 968 - Digitalisation in Financial Markets and New Horizons for Data and Reporting
Wednesday 8 October 10:50 a.m. - 12:30 p.m. (Europe/Amsterdam)
Abstract
With the increased speed of market movements, data on OTC derivatives collected by Trade Repositories (TR) have become a valuable source of information for market monitoring. This paper describes how the Hong Kong Monetary Authority developed a framework for using the TR data, comprising of four steps. The “SESA” framework includes: (i) Standardisation of entity and stock names by building on Legal Entity Identifiers and other market identifiers; (ii) Enrichment of entity and trade information with market data; (iii) Scanning for anomalies; and (iv) Aggregation of exposures. The framework is shared as a reference for other central banks and regulators exploring the use of TR data for analysis.