Societe Generale Securities Services (SGSS) has launched a trade repository reporting offer for OTC derivatives, servicing multi-counterparties and multi-asset classes, under the European Markets Infrastructure Regulation (EMIR). This new regulation requires that all EU counterparties report their derivative contracts, whether OTC or exchange-traded, to a trade repository in order to provide transparency in the derivatives markets.
As required by the European Securities and Markets Authority (ESMA), SGSS has designed its trade repository reporting service to support OTC derivatives users in the EU through the entire trading process. SGSS reports details for derivatives transactions to DTCC Derivatives Repository Ltd.* on a D+1 basis for all counterparties. Spanning all derivative asset classes, SGSS also provides reconciliation in the event of a rejected trade and manages contracts for the daily reporting of open positions and retroactive reporting for matured trades, as necessary. EU counterparties that fail to comply with EMIR reporting requirements may be subject to administrative penalties.
“New requirements demand a new industry mindset. Firms using OTC derivatives need to adapt their operational set-up by developing their own trade repository reporting capabilities or by mandating an asset servicer that can report on their behalf,” comments Emmanuelle Choukroun, Director of New Services for asset managers and asset owners at Societe Generale Securities Services. “The appointment of a well equipped services provider can help OTC derivatives users – whether institutional investors or asset managers – adapt to the new regulatory landscape quickly, cost-effectively and safely.”
In addition to the core range of reporting services, SGSS provides a full range of value-added services either as a fully integrated solution or as modular options. These services include independent valuation for challenging counterparty OTC derivative prices, extended connectivity with clearing brokers and custodians as well as position-keeping and collateral management services. Collateral transformation needs can also be managed through SGSS’s repo and securities lending desk. This range of services can be adapted to clients’ specific structures and needs and rolled out on a pan-European basis through SGSS’ platform.