CESR calls for EU-based derivatives information repository

CESR calls for EU-based derivatives information repository

The Committee of European Securities Regulators (CESR) is calling for the creation of a euro-centric repository of bilaterally-agreed credit derivatives, mirroring the DTCC's Trade Information Warehouse in the US.

The move marks another sign of the determination of European regulators to develop EU-based risk management mechanisms, rather than rely on globally-operated US-housed facilities.

The "exploratory" initiative is likely to receive short shrift from global derivatives dealers who have already plugged into the DTCC's Trade Information Warehouse.

The US-based depository says it is talking with regulators in Europe and the US over how best to handle conflicting requirements for governance and oversight, while recognising the investment already made by the industry in developing the Trade Information Warehouse.

Earlier this month derivatives dealers were forced to accede to European demands for the creation of a euro-based clearing counterparty for credit default swaps trades.

InterContinentalExchange, which was building a global CCP in the US, immediately announced plans to create a European equivalent, dubbed ICE Trust Europe. US rival the Chicago Mercantile Exchange is also understood to be seeking regulatory approval for the launch of a European clearing facility.

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