The European Securities and Markets Authority (ESMA) has approved today the registrations of two further trade repositories (TRs) under the European Market Infrastructure Regulation (EMIR). The following entities have been registered as TRs for the European Union (EU):
- ICE Trade Vault Europe Ltd. (ICE TVEL), based in the United Kingdom; and
- CME Trade Repository Ltd. (CME TR), based in the United Kingdom.
Trade reporting to start mid-February
TRs are commercial firms that centrally collect and maintain the records of derivatives contracts reported to them. The registration of these two TRs means that they can be used by the counterparties to a derivative transaction to fulfil their trade reporting obligations under EMIR. The registrations will take effect on 5 December 2013.
Following the registration of a first group of TRs on 7 November 2013, which became effective on 14 November 2013, the reporting obligation start date for all asset classes will begin on 12 February 2014.
Including today’s registrations, there are now six TRs registered in the EU, which can be used for trade reporting. ESMA registered DDRL, Regis-TR, UnaVista and KDPW on 7 November and it has not received any further application for registration.
Background
- EMIR introduced provisions to improve transparency, establish common rules for central counterparties (CCPs) and for trade repositories (TRs) and to reduce the risks associated with the OTC derivatives market. It provides for the obligation to centrally clear OTC derivative contracts or to apply risk mitigation techniques such as the exchange of collateral. It also provides for the direct supervision and the registration of TRs by ESMA as well as the recognition of non-EU TRs.
- The two trade repositories approved by ESMA today are part, or subsidiaries of, bigger groups. More detail on the parental relationships:
- ICE Trade Vault Europe Ltd, based in the United Kingdom, is a subsidiary of the International Exchange Inc. (ICE), based in the United States;
- CME Trade Repository Ltd., based in the United Kingdom, is owned by the Chicago Mercantile Exchange Group (CME), based in the United States.
- For more details on the list of registered TRs and the derivative asset classes which are covered by the registration, please refer to the following list: http://www.esma.europa.eu/page/Registered-Trade-Repositories
- ESMA is an independent EU Authority that works closely with the other European Supervisory Authorities responsible for banking (EBA), and insurance and occupational pensions (EIOPA), and the European Systemic Risk Board (ESRB).
- ESMA’s mission is to enhance the protection of investors and promote stable and well-functioning financial markets in the European Union (EU). As an independent institution, ESMA achieves this aim by building a single rule book for EU financial markets and ensuring its consistent application across the EU. ESMA contributes to the regulation of financial services firms with a pan-European reach, either through direct supervision or through the active co-ordination of national supervisory activity.