* LSE eyes OTC trade repository
* Seeks control of FTSE International to boost derivatives
LONDON Dec 15 The London Stock Exchange
has started talks with British regulator the Financial
Services Authority (FSA) about launching a trading data service
for over-the-counter (OTC) derivatives.
The LSE already offers a trade data repository called
UnaVista TRS, for share transactions, but is eyeing expansion
into OTC products ahead of regulatory reforms to that market.
"We are in very early discussions with UK regulators about
the possibility of using the UnaVista TRS as a registered trade
repository for OTC derivatives," said Mark Husler, head of
business development in the LSE's data unit.
European regulators and their U.S. colleagues plan to pass
into law next year changes that will force the $600 trillion OTC
market to use exchange-like services, such as trade repositories
and clearing houses.
Lawmakers like trade repositories because they act as a
central database of all outstanding trades which can help them
unravel the mess caused by a major trading firm default, like
that of Lehman Brothers in 2008.
The British exchange said on Monday it was to buy publisher
Pearson's 50 percent stake in FTSE International for
450 million pounds ($703 million) to boost its derivatives