Cappitech, a provider of regulatory reporting, has completed the first vendor-led porting of all relevant trade reporting data from CME’s outgoing trade repositories (TR).
Earlier this year, the US derivatives exchange CME Group was forced to begin winding down its NEX’s Abide regulatory reporting and TR product suite after failing to offload the businesses.
Reporting to REGIS-TR, the data from this first group of clients purposely represented several different financial institutions types and asset classes, ensuring that the porting will work across the industry, says Cappitech.
Unlike porting from an existing TR to another TR where only open positions need to be ported, the European Market Infrastructure Regulation (EMIR) requires a full history of both open and closed positions to be ported in the case of a TR winding down.
Consequently, all CME-held open and closed trade data since 2014, when EMIR came into existence, need to be ported, totalling billions of records. This is “a massive undertaking,” Cappitech explains.
The Israeli-based firm is, therefore, offering to transfer CME clients’ data to REGIS-TR or other TR and make any necessary amendments to the reporting to align it with the new TR’s requirements.
Ronen Kertis, Cappitech CEO and founder, said: “The extraordinary high volumes of data means that slots for this porting need to be booked in advance and can only be achieved over weekends when markets are closed."
"Porting slots prior to the 20 November deadline when CME will cease its TR activities are already being filled quickly, Kertis added.
“Vendors and TRs need to be fully engaged with clients to ensure this can be completed in time,” he explained. “Last weekend, our porting went smoothly with a great job performed by the REGIS-TR, CME and Cappitech staff and we have a clear plan for further porting the reminder of our clients during the upcoming weekends.”
Lars Holst, CEO of GCEX, one of the clients involved in the initial port, commented: "Porting went very smoothly from CME to REGIS-TR and Cappitech was vigilant in providing the transparency we needed throughout the process. We are happy that this huge undertaking is now successfully behind us."
Meanwhile, Thomas Steimann, CEO of REGIS-TR SA, said: “The successful porting of the first tranche of accounts from CME last weekend represents an important milestone and, in this regard, I very much look forward to the continued development of our long-term strategic partnership.”
