BNP Paribas Securities Services will help buy and sell-side clients of the London-based DTCC Derivatives Repository comply with the European Market Infrastructure Regulation (EMIR) rules for derivatives trades reporting.
EMIR requests all participants to report both their OTC and listed derivative transactions to a trade repository. The repositories will act as information warehouse, storing the details of all derivatives trades exclusively for reference and inspection by regulators. One party to the contract can delegate the reporting obligations to the other, or a third party can be used.
Helene Virello, head of collateral management services at BNP Paribas Securities Services, said: “A large number of industry players still associate EMIR exclusively with clearing. As a result, many may be unprepared to comply with reporting provisions entering into force in January 2014. Our agreement with DTCC provides an effective solution to fulfil the legal obligation in a timely and cost effective manner. As such we expect strong demand for third party reporting services.”
EMIR requests the reporting of an extensive range of information which goes much beyond execution and confirmation details. Information on valuation, on the collateral held, on the rationale of the trade and on the identity of the final beneficiary is also required.
“The generation of the reporting may result in a very cumbersome and time consuming burden for our clients” added Virello.
“Information must be taken from many sources, aggregated and reconciled using common identifiers. Along with our Collateral Access products, we can accompany our clients through the entire transaction process, from trade capture to reporting, including electronic affirmation and confirmation and liquidity solutions and we are ideally placed to carry on reporting on behalf of trading parties.”
Andrew Green, the global head of derivative account management for DTCC Deriv/SERV, said: “By reporting their trades to a DTCC repository once, clients of BNP Paribas can meet their reporting obligations in multiple jurisdictions, where such obligation exists. Having this discussion with their service providers or dealers, or with a trade repository, is paramount to ensuring they are ready to meet their regulatory obligations.”
