CME to close NEX Regulatory Reporting and TR services
15 May 2020 Chicago
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CME has confirmed plans to wind down Abide Financial and NEX Regulatory Reporting and its European and Australian trade repositories (TR) by 30 November.
A spokesperson for CME told SLT that the decision to close the reporting hub’s doors came “following an evaluation of our business portfolio after the acquisition of NEX Group in November 2018”.
CME will retain the US (CFTC) swap data repository and Canadian trade repository services.
“During the coming months, CME Group will work closely with all clients and regulators to ensure a smooth transition and an orderly wind-down of the impacted services,” the spokesperson added.
NEX Regulatory Reporting was licenced to operate as a TR under the European Markets Infrastructure Regulatory and the Securities Financing Transactions Regulation, which is due to come into effect in July.
Those clients will now be faced with the daunting task of sourcing a new TR and approved reporting mechanism in a few short months before go-live, with all the on-boarding and testing steps this entails.
Commenting on the news of the shutdown, Cappitech said: “Over a thousand CME clients will need to find a new TR solution and/or onboard their reporting with a new vendor. Tremendous challenges come with this process including having to port TR data.
“Clients may need to change from the format they are used to using, and work with a new vendor to ensure their previously used reporting processes and technical environments are understood so as to make a swift switch.”
As a whole, CME accounts for 38 percent of global volume market share and processed over 2.5 billion trades in 2017.
CME is also responsible for about 40 percent of global trade reporting volume so the impact on is significant and will involve a shift across the market.
A spokesperson for CME told SLT that the decision to close the reporting hub’s doors came “following an evaluation of our business portfolio after the acquisition of NEX Group in November 2018”.
CME will retain the US (CFTC) swap data repository and Canadian trade repository services.
“During the coming months, CME Group will work closely with all clients and regulators to ensure a smooth transition and an orderly wind-down of the impacted services,” the spokesperson added.
NEX Regulatory Reporting was licenced to operate as a TR under the European Markets Infrastructure Regulatory and the Securities Financing Transactions Regulation, which is due to come into effect in July.
Those clients will now be faced with the daunting task of sourcing a new TR and approved reporting mechanism in a few short months before go-live, with all the on-boarding and testing steps this entails.
Commenting on the news of the shutdown, Cappitech said: “Over a thousand CME clients will need to find a new TR solution and/or onboard their reporting with a new vendor. Tremendous challenges come with this process including having to port TR data.
“Clients may need to change from the format they are used to using, and work with a new vendor to ensure their previously used reporting processes and technical environments are understood so as to make a swift switch.”
As a whole, CME accounts for 38 percent of global volume market share and processed over 2.5 billion trades in 2017.
CME is also responsible for about 40 percent of global trade reporting volume so the impact on is significant and will involve a shift across the market.
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