NEX Abide Trade Repository AB has been registered as a trade repository (TR) by the European Securities and Markets Authority (ESMA). The designation comes into immediate effect and classifies NEX as one of just eight TRs under the European Market Infrastructure Regulation (EMIR) regime.
Obtaining this distinction as a certified TR by ESMA represents a crucial step for NEX Abide Trade Repository. Prior to being acquired a little over a year ago, Abide Financial had already embarked on plans to become a registered TR under EMIR back in 2015.
Short-list of TRs in EU
Today’s registration followed a lengthy review of NEX’s capabilities and technical standards. Obtaining this certification also reflects an extremely rigorous process and will help allow NEX Abide Trade Repository to maintain a larger role as a TR for processing volumes of EMIR reportable transactions.
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Approval by ESMA as a TR is subject to a number of technical standards which detail policies, processes, and systems that need to be in place to manage such a large collection of derivatives records. For this reason, the number of TRs remains quite low across the bloc.
NEX Abide Trade Repository is based in Sweden and covers a range of derivative asset classes – these include commodities, credit, foreign exchange (FX), equities, and interest rates. Central to its bid for registration as a TR was EMIR regulations – in particular, the regime had previously implemented provisions to improve transparency.
Additionally, EMIR legislation has also in recently years moved to establish common rules for central counterparties (CCPs) as well as for TRs with the collective aim to reduce risks associated with the over-the-counter (OTC) derivatives market.
Presently, a total of eight TRs are registered by ESMA in the EU, placing NEX Abide Trade Repository AB on a short-list for processing volumes of EMIR reportable transactions. With the new designation, NEX Abide can also leverage its role as a TR, catering to counterparties in need of fulfilling their trade reporting obligations under EMIR.