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REGIS-TR, the global OTC derivatives trade repository, will launch its foreign exchange (FX) reporting service in November 2011. This service development enhances its existing reporting service for interest rate derivatives that was launched in December 2010. Both instruments – foreign exchange and interest rate derivatives – cover a significant proportion of the market’s overall OTC derivatives transactions. The launch of the foreign exchange service anticipates mandatory reporting of OTC derivatives contracts for financial and non-financial institutions across the globe and prepares REGIS-TR customers for respective regulatory changes.
Market participants will be able to comply with regulatory reporting requirements at the same time as they are provided with an electronic means of matching and confirmation of their positions with counterparties. Additionally, as of November, they will also be able to match transactions in foreign exchange derivatives at two levels: primary details, necessary for regulatory compliance; confirmation details, providing legal certainty to the parties by qualifying for REGIS-TR’s registry stamp.
Jesús Benito, Managing Director of REGIS-TR, said: “Our members will benefit from a wider range of OTC derivative products covered within one system and one legal contractual framework with REGIS-TR. With the new release, REGIS-TR will be able to register currency swaps, forwards and options next to the existing interest rates instruments already captured today. REGIS-TR is further committed to providing equal services and functionalities for the remaining OTC derivative product classes, equity, commodity and credit derivatives in the course of 2012.”
Miguel Angel Alonso Simon, Head of Back-office of BBVA, confirms: “Although still a young venture, our experience of REGIS-TR has been positive from day one and we are convinced of the benefits we can gain by using the trade repository. We look forward to being able to report a wider range of assets class in the near future.”
Philip Brown, Member of the Board of Directors of REGIS-TR, concludes: “This is another great example of the further development of our service to meet the market’s needs. As we move forward, the provision of value-added services such as exposure management and the white-labelling of REGIS-TR as a basis for the development of national domestic trade repositories in further jurisdictions, will add further value for our direct participants as well as for markets interested in implementing REGIS-TR as their domestic trade repository solution.”
Global regulations, due to come into force at the end of 2012 based on G-20 commitments, are set to require greater transparency in the OTC derivatives market and the reporting of OTC trades to a trade repository. REGIS-TR’s solution will ensure participants are fully compliant with future regulations, but will also bring added-value benefits in efficiency and risk reduction.
