Spain's Bolsa Y Mercados Españoles (BME) has set back the launch of a planned OTC trade repository by six months until the end of the year. The project's cross-border aspirations have received a boost, however, with Clearstream banking announcing its support for the venture.
The Spanish stock exchange operator first released details of its plans in November, with a launch date set for the second-quarter. The initiative is in line with the European Commission's forthcoming regulations, which aim to achieve greater operational control and transparency in OTC derivatives.
The BME now says customer testing within the registry is scheduled to start in July with full implementation scheduled for the fourth quarter of 2010.
In the first phase, only interest rate derivatives - IRS, FRA, Cap and Floor - will be available. The next phase of development will encompass a broader scope of OTC derivatives, covering underlying assets such as fixed income, equities, currencies, commodities and others.
Jesús Benito, CEO of BME's Iberclear, says Clearstream's involvement is "indicative of the international appeal" of the repository.
Philip Brown, head of relationship management at Clearstream Banking, adds: "Customers are now looking for a European solution that will deliver their upcoming obligations on transparent registration of OTC derivatives. The joint know-how and existing market coverage of our combined organisations will allow us to roll-out the service quickly and expand its offering to cover all types of OTC derivatives."