Technology

Euro Insanity

There’s an old saying that insanity is defined by doing the same thing again and again and expecting different reshutterstock_323387108sults.  There is no shortage of compliance pain under ESMA, REMIT, MIFID…etc:

ESMA recently released an updated EMIR reporting specification which increases the number of  report-able fields by 50% to 129.  Everyone has been a bit heads-down sorting out ACER II,  amidst a growing chorus of complaint about the existing complexity, cost, difficulty of their EMIR solution.

But there is hope for doing something different.

Trade Repositories –  It is a buyers market for TRs.  Some of the original choices have proved to be…well let’s just say “really bad.” And by ‘really bad” I mean an absolute black hole in terms of service, support and cost.  But there is good news.  There are other TRs that will really go a long long way to get your business and eliminate the nonsense and bloodletting.  With K3 switching TRs is a simple matter.

Automated Reporting – The area where you can get the biggest bang for your Euro. At least 98% of your reporting should be automated and not require human intervention.

Reporting Management and Updates – If anything is certain, regulations will change and reporting specifications will follow. You should be able to manage these changes in your reporting system without the need for digging down into code. As an example, level II updates took half a day with K3.

This is a golden opportunity to re-look at how reporting is done an off the shelf platform like K3.

#RegReporting2.0

The take away is this:  if your company took up a “Just Report It” approach to reporting and cobbled together a solution and TR that is giving you heartburn, now’s a good time to look at replacement.  We think you will be pleasantly surprised at how cost effective deploying an automated/off the shelf solution like K3 can be.  We have a crazy long list of referenceable clients and would be happy to connect you.

ACER Tidbits
So, we know a lot of people are headsdown on ACER Table 2 reporting. Did you know:

  • Table 2 trades submitted for confirmation on ICE eConfirm can automatically be reported to the ICE RRM?  If you can get your counterparty to agree to confirm there, it’s nice because it eliminates a lot of the 2 sided, USI, and other pains of table 2 reporting. Just match on eConfirm and you are done.
  • K3 automatically converts trades into ACER XML for reporting Table 1 and Table 2 trades.  Once in ACER XML it can be automatically sent to any TR.  If you’d like to see this just send us a note and we will set you up for a demo.  tje@broadpeakpartners.com