About SIID -TR Statement - Sistema Integrado de Información sobre transacciones de Derivados
About SIID – TR
Among the fundamental lessons learned from the 2008 Global Financial Crisis (GFC) is the need to improve the transparency of over-the-counter (OTC) derivatives markets in order to better manage the financial risks involved and promote financial stability.
One of the recommendations of the 2009 Pittsburgh G20 Leaders' Summit was that all OTC derivatives should be reported to a Transaction Repository (TR), incorporating these entities as one of the Financial Market Infrastructures (MFIs). This was formalized in the update of the International Principles for MFIs (PFMI) of the Committee on Payments and Financial Markets Infrastructures (CPMI) of the Bank for International Settlements (BIS) and the International Organization of Securities Commission (IOSCO) /, published in 2012.
A TR corresponds to an Infrastructure that maintains a centralized electronic registry of transaction data. Its functions consist of the collection, storage and dissemination of relevant information for the market and its regulators, and have been developed at an international level in accordance with the following fundamental objectives:
- Increase transparency and availability of information in the markets, both for the authorities and the general public.
- Promote financial stability through adequate risk management of financial institutions and effective monitoring and supervision by the authorities.
- Prevent market abuses, as a consequence of increased transparency in the markets, particularly in financial derivatives.
The Central Bank of Chile, in exercise of its legal powers, including the exercise of its regulatory authority, has issued a regulation (Chapter III.D.3 of the Compendium of Financial Standards) and developed the Integrated Information System on Derivatives Transactions ("SIID" or "SIID-TR") that operates as a derivatives repository following international best practices and recommendations for a TR, and therefore adhering to the PFMIs applicable to it.
This market infrastructure must be reported to by persons resident or domiciled in Chile (SIID Participants), who correspond to banks, their Subsidiaries, and other entities supervised by the Financial Market Commission (CMF), as well as all those who carry out derivative transactions with non-residents, on exchange rates, development units, interest rates and fixed income, in accordance with the rules established in Chapter III. D.1 of the Compendium of Financial Regulations of the BCCh and its corresponding Operating Regulations, which contain the legal bases and the design of the SIID- TR.
On the other hand, the SIID-TR considers the direct access by the Financial Market Commission to the information provided by banks, their subsidiaries and other entities subject to its supervision. Finally, it should be noted that through this website you can access regulations, reporting instructions, statistics, graphs, methodologies and studies of financial derivatives on currencies, interest rates, UF and fixed income.