As regards implementation, the FSA recognises the positive steps the industry has already taken by facilitating the creation of three trade repositories covering credit, interest rate and equity derivatives, and the progress in creating repositories for commodity and foreign exchange derivatives.

However, the entire market is expected to be ready to report to repositories in just over 18 months’ time and this presents a major logistical challenge. The FSA urges firms to consider what steps they need to take in this regard.

Mr Justham concluded by saying that:

• There are many unresolved issues for the new regulatory regime for derivatives.

• There is a need to urge firms to engage actively, both with the FSA and with ESMA, to ensure that the regime delivered is fit for purpose.

• The importance of preparing thoroughly for the changes which will come about as a result of EMIR and the MiFID review here in Europe, the changes occurring through the Dodd-Frank Act in the United States, and other measures in the rest of the world.

Press release