Derivatives Regulatory Reporting
Will You Meet New Swaps Reporting, Transparency and Recordkeeping Deadlines?
The OTC derivatives market is undergoing significant changes – nearly every derivatives operation and swaps lifecycle process is impacted by regulatory reform. The U.S. Commodity Futures Trading Commission (CFTC) has mandated several reporting regulations resulting from the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), specifically that swap market participants report swap positions. Additional regulations from Dodd-Frank and the European Market Infrastructure Regulation (EMIR) are being created requiring greater transparency and timely reporting of derivatives transactions worldwide with the end goals of reducing systemic risk and market abuse in the derivatives markets.
As of July 2012, 119 of a total of 398 rules have been written and finalized, so there is still a long way to go – and a further 142 rules have yet to even be proposed. As it relates to OTC derivatives the new Dodd-Frank regulations can be summarized along four dimensions:
- Trading. Clearable swaps must be traded electronically where available.
- Confirmation. Confirmation must be completed within set timeframes.
- Clearing. Eligible standardized swaps must be centrally cleared.
- Reporting. All swaps, cleared or otherwise, must be reported to a regulator. Reports include (near) real-time and end-of-day snapshots.
Responding to known and anticipated regulatory requirements, the International Swaps and Derivatives Association (ISDA) has made it a priority to incorporate regulatory reporting features starting in FpML 5.3, which adds support for Reporting View, Transparency View, Recordkeeping View, and Confirmation View.
- Will you be able to meet derivatives regulatory reporting deadlines?
- Do you need to integrate trade repositories, partners and internal systems?
- Are you looking for a better way to parse, transform and integrate FpML 4.x, FpML 5.x and FIX messages?
Create a Regulatory Reporting Framework With C24 Technologies
C24 Technologies’ Derivatives Reporting solution lets developers create regulatory reporting services that collect information from various systems and automatically generate the appropriate report – whether in FpML 4.x, FpML 5.x, FIX, CSV or any other data format. The reporting framework allows you to quickly adopt to the evolving requirements of regulatory reform. Based on C24 Integration Objects, an open and standards-based development tool for efficiently building messaging data services, the solution includes support for DTCC Global Trade Repository (GTR) with plans to support other approved trade repositories including REGIS-TR. C24 simplifies sending and receiving information between internal data sources, trade repositories and regulators. With higher rates of automation, errors and operational risks are reduced throughout the swaps lifecycle.
Immediate Benefits with C24 Derivatives Reporting Solution
Firms can speed compliance with Dodd-Frank or the European Market Infrastructure Regulation (EMIR) using C24’s productivity software and pre-built standards libraries. With C24 Technologies, you can:
- Build reusable model-driven messaging data services to complete regulatory reporting and messaging projects on schedule
- Reduce the burden of staying up-to-date with standards by in-sourcing industry standards and updates from C24
- Consolidate reports and minimize costs through a regulatory reporting framework
- Avoid the risk of failed transactions and the maintenance costs they incur
C24 Integration Objects (C24-iO) is a data modelling, meta-data management, transformation, and messaging integration solution based on Java data binding technology...
C24-iO Standards Libraries are specialised data models for specific integration scenarios like payments, securities and OTC derivatives automation. The libraries fully encapsulate standards such as SWIFT MT-MX, ISO 20022, SEPA, FpML and FIX...