The purpose of this consultation is to collect the stakeholders’ views on trade repositories, including their functions, data and transparency requirements, their location and the legal framework.
The financial crisis, especially the collapse of Lehman Brothers, underlined the importance of a robust and adequately functioning post-trading infrastructure and highlighted the need for more transparency on exposures generated by the over-the counter (OTC) market; in particular, for derivatives, notably credit default swaps (CDS), demonstrating the need to safeguard the OTC market from abusive behaviour. The CESR/ESCB Recommendations for Securities Settlement Systems and Central Counterparties in the European Union, upon request of the ECOFIN, have been reviewed in order to encompass the OTC derivatives dimension.
On 3 July 2009 the European Commission published a Communication on ensuring efficient, safe and sound derivatives markets. In it the Commission referred to the forthcoming report of CESR on trade repositories, on the basis of which the Commission will take appropriate actions. It also raised several other issues that it considers to be important in the context of derivatives markets.
Trade repositories should aim to foster transparency, thus supporting the efficiency, stability and orderly functioning of financial markets. The purpose of this consultation is to collect the stakeholders’ views on trade repositories, including their functions, data and transparency requirements, their location and the legal framework.
CESR takes as a preliminary position that the establishment of one or more trade repositories should be market-led. It notes that it does not want to impose trading of all CDS, nor other OTC instruments in general, on regulated markets
Deadline for comments 6 November 2009
Consultation paper
© CESR - Committee of European Securities Regulators
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