CME

Trade reporting was a central tenet to the G20 response to the post-2007 global financial crises. Counterparties to OTC derivatives transactions would need to report data on the trades to a regulatory approved trade repository, which would offer regulators previously impossible transparency into a market that was widely blamed, or at least linked to, the global financial crises.

There are still only 16 authorised CCPs (central counterparty clearing houses) in Europe. Each clearing house in Europe had to reapply for authorisation under EMIR (the European Market Infrastructure Regulation), as far more importance has been placed upon them by way of the global regulatory response to the financial crises.

It is no surprise that there have been a number of issues with the trade reporting mandate in Europe. In implementing the G20 financial reform programme, EMIR (the European Market Infrastructure Regulation) called for both sides of a transaction to be reported and a complex data field to be filled, with no uniformity of creation behind the identifiers that are crucial to identifying and matching trades.

Approval for the launch of its European exchange has been granted to CME Group by the UK regulator, the Financial Conduct Authority (FCA). This represents another piece in CME’s European infrastructure jigsaw, alongside CME Clearing Europe and CME European Trade Repository. CME Europe will be a Recognised Investment Exchange and will be opening on 27 April 2014. The approval for CME’s European exchange means that it can list its first commodity products on this date. It also plans to launch a full suite of FX futures products on the same date.

CME European Trade Repository is one of six ESMA (European Securities and Markets Authority) approved trade repositories that market participants will be able to report to satisfy their trade reporting obligation under EMIR (European Market and Infrastructure Regulation).

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