The trade repository REGIS-TR, jointly owned by Bolsas y Mercados Espaoles (BME) and Clearstream, has begun operations.
REGIS-TR is the answer to demands from the regulators for more transparency in the OTC derivatives market, the groups say. The start of operations of REGIS-TR takes place 1 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 Telefnica also joined as pilots. Further interested parties from around Europe are apparently in the pipeline.
To operate the trade repository, BME and Clearstream have created a new company that will be headquartered in Luxembourg. Board members are: Jeffrey Tessler, CEO of Clearstream, chairman; Jos Massa, chairman of Iberclear, vice chairman; Jess Benito, CEO of Iberclear; and Philip Brown, executive board member and head of relationship management at Clearstream. Benito will serve as managing director and Thilo Derenbach, senior vice president of Clearstream, as deputy managing director.
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, Tessler says. Our trade repository is designed to meet future market and regulatory expectations for the collateralization of the OTC derivative exposure, where REGIS-TR can leverage Clearstreams expertise in this field.
Benito adds: 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 Telefnica 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, the organization says. 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.