Bolsas y Mercados Espaoles, the Spanish exchange, has announced that it will delay the launch of its trade repository for over-the-counter derivatives by six months until Q4 2010.
The exchange also announced that Clearstream will provide reporting services for the repository.
According to an announcement from BME, customer testing within the registry is scheduled to start in July while full implementation of the trade repository by BME and Clearstream Banking is expected to take place in 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 cover fixed income, equities, currencies, commodities and others.
Despite Spain not being a center of OTC derivative trading, Jess Benito, CEO of BMEs Iberclear, said: Clearstreams joining BMEs OTC trade repository project is indicative of the international appeal of the initiative, which was announced by BME in November 2009. BME considers that Clearstreams participation will help to strengthen and expand its potential and we are confident that together we can contribute to greater transparency in and control over the OTC market.
The press release accompanying the announcement cited the European Commission communication in 2009: Systemic risk and financial regulators need to have a complete overview of the derivatives market. It should therefore become mandatory to report all transactions to trade repositories.
The American clearing house DTCC has already launched its Trade Information Warehouse, a global repository for OTC credit derivatives. TriOptima, based in Stockholm, has also launched an OTC derivatives interest rate trade reporting repository.