Traiana connects four trade repositories as EMIR deadline approaches
Post-trade services company Traiana plans to connect to four trade repositories – CME, DTCC, Regis-TR, UnaVista – in preparation for the European Commission’s EMIR legislation, which requires trade reporting and clearing of OTC derivatives.
EMIR has already been signed into law; however the deadline for trade reporting is 12 February. Traiana already has a trade reporting service, which it calls Harmony TR Connect. The stated aim of the service is to make trade reporting easier by providing a single point of connection for post-trade reporting of both exchange-traded and OTC derivatives trades. The service will support FX, exchange-traded derivatives and equity derivatives, with other products due to be added later.
Traiana isn’t treating Europe as a standalone case – Harmony TR Connect has already been launched in the US, Australia and Hong Kong, each of which are implementing their own equivalent of EMIR as part of the G20 nations drive to reduce systemic risk in OTC derivatives markets.
The tools Harmony TR Connect offers include unique transaction identifier management, so that banks can share unique trade identifiers with their counterparts.
“The messaging service provided by Traiana enables clients to submit multi-asset class ‘over-the-counter’ and exchange-traded derivatives data to our CME European Trade Repository in a simple and efficient manner,” said Daniel Corrigan, executive director and chief executive European Trade Repository, CME Group. “The efficacy of Traiana’s messaging and unique transaction identifier generation is key to this offering.”
Earlier this month, financial messaging cooperative Swift set out its own plans to capitalise on the new rules. Swift is offering its bank customers two options: to use the Swift FIN Copy solution to send confirmations directly to trade repositories, drawing on the customer’s existing Swift FIN confirmation connection, or to to use Swift’s FileAct messaging service to report all OTC derivatives trades – a choice that Belgian bank Belfius has opted for to report its derivatives trades to European trade repository Regis-TR.
Final preparations for EMIR are underway at banks across Europe. Earlier this month, Dutch bank ABN Amro became a member of German derivatives exchange Eurex’s OTC Clear service, which clears interest rate swaps. It is expected that the EMIR obligation to clear will follow the obligation to report trades before the end of this year, with regulator ESMA due to release the regulatory technical standards in September.