Bolsas y Mercados Espanoles (BME), the Spanish stock exchange operator, and Clearstream, the post trade arm of Deutsche Börse Group, welcome the published details on trade repositories for OTC derivatives that the European Commission has provided today in the context of the proposed European Market Infrastructure Regulation.
There is need for clarification regarding the suggested design of the access for third country trade repository providers and the planned timeframe for implementation.
BME and Clearstream will therefore continue their close dialogue with the Commission and other political stakeholders.
BME's and Clearstream's joint initiative, the first European trade repository, REGIS-TR, complies with all new regulatory proposals that have been made public. REGIS-TR is designed to support its clients in meeting regulatory expectations in the areas of:
* Capturing and reporting obligations
* Risk mitigation techniques such as electronic matching and confirmation
* Instrument coverage
* Customer coverage
* Flexibility and transparency
* Lean structure using secure and reliable service infrastructure
* Cost related pricing schemes
Jesús Benito, CEO of Iberclear, the Spanish Central Securities Depository and a BME subsidiary, said: "The regulatory proposals include the right measures to increase the transparency in the OTC derivatives market. The new regulation will help market participants to pursue their businesses with their known counterparties in a risk-reduced and more efficient environment. REGIS-TR will be rolled out to customers before the end of the year and provides early compliance with the upcoming regulation."
Phil Brown, Head of Relationship Management at Clearstream, said: "REGIS-TR is set to be the European solution for a European market. BME and Clearstream have listened to their broad customer base and will now introduce an efficient and cost effective product available for all types of market participants.
REGIS-TR is the 'one-stop-shop' that can deliver operational and network efficiencies for the OTC derivatives transaction reporting."
Broad product range - flexible pricing scheme
The trade repository is set to offer the full range of OTC derivative products before implementation of the European regulation, covering Interest Rate, Equity, Commodities and Risk derivatives such as Credit Default Swaps (CDS).
The first products to be processed by REGIS-TR will be interest rates swaps (IRS), Forward Rate Agreements (FRA), Caps and Floors. Full product coverage will be delivered in 2011.
REGIS-TR will offer a flexible pricing scheme tailored to the needs of large, medium and small size companies - for both financial and non-financial institutions. Different pricing models will allow for an individual choice by the users, depending on their trading habits and extent of activity.
REGIS-TR is designed to increase the efficiency in the OTC derivatives industry. Clients will benefit from operational efficiency gains and increased legal certainty in their daily activities. In addition, risk reduction services are a particularly focus of REGIS-TR for the future.