The European Securities and Markets Authority (ESMA) has approved the registrations of the first four trade repositories (TRs) under the European Market Infrastructure Regulation (EMIR):
- DTCC Derivatives Repository Ltd. (DDRL), based in the United Kingdom (a subsidiary of US-based DTCC);
- Krajowy Depozyt Papierów Wartościowych S.A. (KDPW), owned by the Warsaw Stock Exchange, the Polish State Treasury, and the National Bank of Poland;
- Regis-TR S.A., based in Luxembourg and owned by Clearstream Banking (Luxembourg) and Iberclear (Spain); and
- UnaVista Ltd, based in the United Kingdom and part of the London Stock Exchange Group.
Trade repositories will play “a fundamental role in the surveillance of derivatives markets and in risk monitoring,” said ESMA chair Steven Maijoor. “The data gathered by TRs will enable regulators to identify and reduce the risks associated with derivative markets.”
The role of TRs will be to collect and maintain the records of derivatives contracts reported to them. They will cover all derivative asset classes –commodities, credit, foreign exchange, equity, interest rates and others – irrespective of whether the contracts are traded on or off exchange. They will be used by counterparties to derivative transactions in fulfilling their EMIR trade reporting obligations under EMIR.
The registrations will take effect on 14 November 2013, with the reporting obligation beginning on 12 February 2014, ie, 90 days after the official registration date.
ESMA is processing further TR applications.
ESMA's press release is available by clicking here.