Reporting Infrastructure Emerges Ahead of Emir Deadline

Terry Flanagan

With the impending regulatory deadlines in Europe for both trade reporting and portfolio reconciliation, companies affected by the new rules are currently seeking solutions for both requirements.

REGIS-TR and TriOptima have revealed that they will provide portfolio reconciliation of REGIS-TR’s trade repository data with data in TriOptima’s triResolve reconciliation service for OTC derivatives as requested by their clients.

Cooperation between REGIS-TR and TriOptima will assist their mutual clients in meeting regulatory obligations and operational goals efficiently. Open access and interoperability among service providers are key to success in the new market reality of multiple reporting venues and dual side trade reporting under Emir.

By September 15, financial and non-financial firms will have to start reconciling their OTC derivatives portfolios; and trade reporting will begin January 1, 2014 under the European Securities and Markets Authority’s rules.

“A large cross section of European financial institutions and corporates will appreciate the functionality offered through this new collaboration to solve their trade reporting and reconciliation requirements efficiently,” said David Retana, REGIS-TR’s managing director. “Since November 2012, REGIS-TR has provided customers with a reporting environment where they can test, understand, and implement before actual go-live deadlines under Emir; and this enhancement will offer significant benefits.”

David Retana, REGIS-TR

David Retana, REGIS-TR

REGIS-TR has seen its client base double in a three-month period with over 400 pilot customers testing transaction reporting. TriOptima’s triResolve portfolio reconciliation platform is used by over 425 institutions and reconciles 8 million transactions, most daily.

Data integration with REGIS-TR will enable triResolve clients to verify and reconcile transactions submitted to the repository and leverage triResolve’s resolution workflow to quickly identify and address any exceptions. In the future functionality may be expanded to meet additional reporting and operational demands.

REGIS-TR, a joint venture launched by the Spanish central securities depository (CSD) Iberclear and Clearstream, an international central securities depository (ICSD), is a central trade repository for derivatives transactions across multiple product classes and jurisdictions. The trade repository is open to financial and non-financial institutions, primarily in Europe, and will service all types of derivative contracts in a unique market offering.

The registry collects and administers details of transactions reported by its clients to give market participants and regulators an aggregated view of positions in compliance with upcoming regulation.

In addition to its core services, REGIS-TR will introduce a number of value-added products including centralized collateral management and third-party exposure valuation services. The company is already progressing well towards its goal of becoming a one-stop-shop for the registration of the full range of derivatives.

TriOptima, an ICAP Group company, is a provider of post trade infrastructure and risk management services for the OTC derivatives market including triReduce for portfolio compression; triResolve for portfolio reconciliation and dispute resolution; triBalance for proactive portfolio risk management across cleared and uncleared trades; and triQuantify for portfolio risk analytics powered by numerical solution techniques. TriOptima’s core services meet current and anticipated regulatory regulations for OTC derivatives compression and reconciliation.

“Assisting our clients with verification and reconciliation of portfolio data submitted to REGIS-TR is another step towards data accuracy and workflow simplification.” said Raf Pritchard, CEO of triResolve. “Cooperating with REGIS-TR is part of TriOptima’s strategy to connect to multiple platforms across the OTC derivatives landscape including central clearinghouses, confirmation platforms, repositories, and other emerging providers of trade processing and data store functionality.”

Used by global dealers, regional banks, asset servicers, energy houses, asset managers, and buy-side firms, triResolve regularly reconciles nearly 7 million trades representing over 90% of all collateralized OTC derivative transactions globally. The service benefits trade control, settlement, documentation, collateral and counterparty credit risk functions.

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