The Gateway to Algorithmic and Automated Trading

SimCorp tackles latest TR requirements, sets up European TR user group

First Published 5th September 2014

Clients successfully meet new requirements for derivatives reporting as set out under EMIR and benefit from more efficient derivatives handling

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; optimisations 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 and DTCC as European trade repositories authorised by ESMA. Before the first reporting deadline of February 12 over 25 SimCorp clients across Europe opted to use its trade reporting solution integrated into the the company's investment management platform, SimCrop Dimension. There is a direct drill-down from the reporting data to the actual trades captured in the platform.

"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.

SimCorp has also created the European Trade Repository User Group to help with understanding and collaboration between users and trade repositories. The first meeting will take place in Paris in mid-September and include Regis-TR and DTCC.