Now that ESMA has announced that it has registered DTCC, based in the UK, KDPW in Poland, Regis-TR in Luxembourg and UnaVista, also based in the UK, as registered trade repositories (TR) under the EMIR directive, reporting services are starting to become available.

The first is Misys’s Regulatory Reporting Service (RRS). It is a reporting platform which enables corporates, fund managers, and SME banks to meet their EMIR-specific regulatory reporting requirements. RRS is a software-as-a-service (SaaS) solution hosted in a private data centre. Once on boarded, all that customers need to use the reporting service is a browser with internet connection.

EMIR requirements
EMIR requires that both the counter-parties of a derivative deal must report to the Trade Repository (TR) on execution, modification, and termination of a deal. The reporting to the trade repositories is a multi layered process that involves data collection, data enrichment, and data formatting before reporting to the TR. For each instrument, applicable fields (for an instrument type) out of more than 90 possible reportable fields must be populated and reported to the Trade Repositories. The data then needs to be converted to the required format by TR, the formats could be *.xml, *.csv, *.FpML.

The regulations mandate a set of new data fields like unique trade identifier (UTI), legal entity identifier (LEI), unique product identifier( UPI), Venue of Execution, risk mitigation related data points, exposures, and clearing related data fields must be reported in addition to deal information. Most of these new fields are currently not captured in upstream trade capture systems.

Misys RRS
Misys regulatory reporting service enables customers in becoming regulation compliant with minimal effort, and more importantly, with minimal data AND they do not need to modify their existing upstream trade capture systems in any way:

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All that a customer needs to do is to upload the deal information, once they have been on boarded. Once deal data is uploaded, the whole life cycle of the reporting process, is taken care of automatically by Misys RRS. It enriches the missing data points using master static data and state of the art rules engine. It has the functionality to generate UTI, if required, map an instrument to correct UPI, convert the data to the format required by TR, and connect with and report to multiple TRs.

MISYS RSS enables users to view the status of what has been reported to the Trade Repository through a blotter and in which they can amend or cancel actions on a reported message.

Misys Regulatory Reporting Service – Data Capture
Customers can upload their external derivative data - swaps, FRAs, Caps/Floors - into the RRS reporting service using a variety of methods, including:

• through a Web Page: a simple interface file form has been designed to enable customers to enter their deal information. The interface file requires only the mandatory deal information needed to be reported. This interface file, containing multiple deals, can be uploaded into the reporting service using a web screen.
• manual data capture: customers can also enter deal data using a web screen manually. A simple web screen entry form with only required fields has been developed, e.g. for an FX Forward, only a handful of the 90 possible fields needs to be entered
• existing Misys Confirmation Matching (CMS) corporate customers (some 400 in Europe): an automatic adapter has been built for the CMS users. The adapter pushes the data sent to CMS for confirmation into the reporting service. No work is required the CMS customer to achieve regulatory reporting compliance.

Customer On-Boarding
The on-boarding process which consists of setting up master data - which includes static data for legal entities (brokers, deal counterparty, execution platforms, and local holiday calendar and global configuration required to use the reporting service - is expected to take two weeks. The messages to TR are automatically filled in with this master data.

Charges
There is a one-time fee for the on-boarding, and a monthly (volume neutral) connectivity fee. Users can also include the TR fees to take advantage of Misys’s bulk discount with the TRs.

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Not surprisingly all sizes and types of corporates have been showing interest in the Misys RRS service because, almost without exception, they will all have to report their derivative deals to the TRs. For those who are already Misys CMS users, adding RRS will be a no-brainer. Eventually, EMIR may not be the nightmare it appears at the moment.