– Clients successfully meet new requirements for derivatives reporting as set out under EMIR and benefit from more efficient derivatives handling
– SimCorp creates European Trade Repository User Group to build understanding and collaboration between users and TRs
Following the second compliance deadline for reporting derivatives trades to a trade repository (TR), SimCorp confirms that their clients successfully met the requirements as set out under the European Market Infrastructure Regulation (EMIR).
From August 11, investment management firms are required to include valuation and collateral reports in addition to the data that must already be reported to one of the TRs authorised by the European Securities and Markets Authority (ESMA). EMIR contains three requirements that have a direct bearing on investment managers’ IT infrastructure:
· Introduction of Central Clearing Parties (CCP) to reduce counterparty risk
· Optimizations in processing OTC derivatives
· Increased market transparency by introducing TRs
As regulators have given warning that non-compliance with these will result in severe penalties and the market has had a relatively short time to interpret and respond to the new regulations, there has been a high demand for quick-to-implement technology solutions.
The solution offered by SimCorp supports Regis-TR S.A. and DTCC as European TRs authorized by ESMA. Before the first reporting deadline of February 12, 2014 over 25 SimCorp clients across Europe opted to use SimCorp’s Trade Reporting solution which is seamlessly integrated into the SimCorp Dimension Investment Management platform. The integration saves SimCorp clients time when producing their reports by for instance allowing a direct drill-down from the reporting data to the actual trades captured in SimCorp Dimension.
“EMIR compliance has been a lengthy and challenging process. Deploying the right technology has been essential to coping with the requirements and our partnership with SimCorp has enabled us to handle the new rules competently,” said Marita Olofsson, Head of Business Administration Asset Management at AFA Insurance. “We are confident that with the solid technology platform SimCorp provides, we are well positioned to manage any new compliance requirements arising from the evolution of EMIR in the coming years.”
“The implementation of the Trade Repository solution was marked by the close collaboration between our clients and SimCorp’s consultants deploying the solution in each country. In order to maintain this close contact and to develop our solution further, we have invited our clients to the first European Trade Repository User Group Meeting taking place on September 17, 2014 in Paris. We are looking forward to bringing together our clients, as well as representatives of Regis-TR S.A. and DTCC in a knowledge sharing workshop which will be beneficial for all participants.” says Carsten Kunkel, Head of SimCorp’s Global Regulatory Center of Excellence.