Poland to launch trade repository for swaps

Poland will launch a trade repository to address regulatory change on derivatives reporting in the European market infrastructure regulation.

Poland will launch a trade repository to address regulatory change on derivatives reporting in the European market infrastructure regulation (EMIR).

The new trade repository, administered by Poland's National Depository for Securities (KDPW), will launch in November and plans to file for registration with European Securities and Markets Authority (ESMA) as a trade repository next year, when new guidelines on European swaps dealings take effect.

Under EMIR, over-the-counter (OTC) derivatives contracts traded in Europe will be standardised where possible, making them suitable for trading on exchange-like platforms and eligible for clearing through a central counterparty (CCP).

Trade repositories will also be charged with managing the reporting of swaps exposures, another central tenet of the EMIR, so that the industry and regulators can better monitor systemic risk.

Before ESMA’s new guidelines take effect, the KDPW will determine operational rules for the repository according to Polish law on collecting and storing information on the trading of financial instruments, including the reporting requirements of CCPs.

The ESMA guidelines, which were finalised last month, will go through a final check with the European Commission and will effect at the start of next year.

Once the Commission has approved the technical standards, the trade repository’s regulations and systems will be harmonised in line with the requirements of the standards, and until then, the new Polish trade repository will operate through an internet application available to market participants on the National Depository's website.

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