OTC Derivatives Trade Repository REGIS-TR Starts Operations
- Banco Sabadell, BBVA, Iberia and Telefónica first entities to connect - New company to manage the trade repository founded on 9 December - Jeffrey Tessler and Jesús Benito Chairman and Managing Director of new company
Bolsas y Mercados Españoles (BME) and Clearstream today announced the start of operations of the trade repository REGIS-TR that is jointly owned by the two market infrastructures. The trade repository is the answer to demands from the regulators for more transparency in the OTC derivatives market. The start of operations of REGIS-TR takes place one year after the initiative was announced in November 2009 and follows a testing period in which the financial institutions Banco Sabadell and BBVA participated as pilots. Over the last few weeks the corporates Iberia and Telefónica also joined as pilots. Further interested parties from around Europe are in the pipeline.
To operate the trade repository, BME and Clearstream have created a new company that will be headquartered in Luxembourg and which will have the following Board:
- Jeffrey Tessler, CEO of Clearstream, as Chairman
- José Massa, Chairman of Iberclear, as Vice Chairman
- Jesús Benito, CEO of Iberclear
- Philip Brown, Executive Board member and Head of Relationship Management at Clearstream
The General Management of the company will consist of:
- Jesús Benito, CEO of Iberclear, as Managing Director
- Thilo Derenbach, Senior Vice President of Clearstream, as Deputy Managing Director
Jeffrey Tessler, Chairman of REGIS-TR, said: “We will turn a regulatory requirement into a benefit for our clients by creating a more efficient environment through automation and standardization, thus also reducing operational risk. Our trade repository is designed to meet future market and regulatory expectations for the collateralisation of the OTC derivative exposure, where REGIS-TR can leverage Clearstream’s expertise in this field.”
Jesús Benito, Managing Director of REGIS-TR, said: “The start of operations of REGIS-TR with a very short time-to-market marks a major step forward for the company and the materialization of a solution that aims to enhance transparency in the OTC derivatives market by providing regulators with a clear picture of the market, in this way building on the know-how and years of experience of Iberclear in the operation of registries. The interest expressed by Iberia and Telefónica to participate as pilots is further proof of the interest our trade repository has generated among financial and non-financial institutions.”
REGIS-TR collects and administers details of all OTC transactions reported by users, giving market participants and regulators access to a consolidated global view of these OTC derivative positions – an overview that was not available until now, but sought for by regulators. REGIS-TR complies with all new regulatory proposals that have been made public and serves both financial and non-financial institutions. The trade repository aims to deliver flexible participation levels that adapt to the diverse profiles and needs of all stakeholders and actors in the OTC derivatives market.
BME is the operator of all stock Markets and financial systems in Spain. BME has been a listed company since 14 July 2006 and an IBEX 35® constituent since July 2007. BME is a high technology company with a highly skilled workforce. It has the know-how and resources necessary to offer a wide range of services, products and advanced trading and global market access systems to issuers, intermediaries and investors, whether in Spain or elsewhere. BME is a highly diversified company structured into seven business-units which represents the broadest and most varied range of products and services that a company in its sector can offer to the financial community: Equities, Public and Corporate Debt, Derivatives, Clearing and Settlement, Information Dissemination, Consultancy and Technology.
As an international central securities depository (ICSD) headquartered in Luxembourg, Clearstream provides the post-trade infrastructure for the Eurobond market and services for securities from almost 50 markets worldwide. Clearstream’s customers comprise approximately 2,500 financial institutions in over 110 countries. Its services include the issuance, settlement and custody of securities, as well as investment fund services and global securities financing. With almost €11 trillion in assets under custody, Clearstream is one of the world’s largest settlement and custody firms for domestic and international securities. As a central securities depository (CSD) based in Frankfurt, Clearstream also provides the post-trade infrastructure for the German securities industry, offering access to a growing number of markets in Europe.
REGIS-TR is a European central register, where all contracts agreed over a wide variety of derivative financial instruments traded OTC can be registered. REGIS-TR facilitates administrative tasks and helps improve the operational management of these transactions. For the contracts entered, REGIS-TR offers services including data management, certification, electronic matching and confirmation, as well as positions reconciliation. This pan-European registry achieves great relevance given the multiple advantages offered both to its participants and the European Supervisory Authorities.
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