Deutsche Börse and Risk Focus partner on OTC trade reporting

Deutsche Börse Group and Risk Focus have teamed up to strengthen over-the-counter (OTC) trade reporting.

Risk Focus will provide key system components for Deutsche Börse’s Regulatory Reporting Hub OTC trade reporting solution, including Validate.Trade, the reporting system of its subsidiary, RegTek.Solutions.

The functionality of the components provided by Risk Focus and RegTek.Solutions includes interpretation of instrument details of OTC derivatives submitted in the FpML or XML formats, as well as a rules engine for applying the regulatory validations, eligibility checks and deferrals.

Georg Gross, head of regulatory services at Deutsche Börse, which has concentrated its solutions for regulatory compliance onto the Regulatory Reporting Hub, said: “In the dynamic environment with frequent updates of regulatory details, the approach to using a rules engine has already proven to be very useful.”

“OTC trade reporting is one of the backbones of MiFID II, which is going to be effective as of January 2018. Deutsche Börse’s MiFID II OTC trade reporting service will provide clients with an efficient and simple-to-use way of meeting their OTC transparency requirements in accordance with the new regulation.”