TriOptima has claimed that its triResolve service for portfolio reconciliation offers a solution to the unmatched trade problem reporting that institutions are facing in European trade repositories.
Under European Market Infrastructure Regulation (EMIR) reporting rules, firms can either send their trade data directly to a repository or they can delegate another firm to send the data on their behalf.
Trades sent to the repository by each counterparty or its representative should have Unique Trade Identifiers (UTIs) and Legal Entity Identifiers (LEIs) so they can be matched.
Since implementation of the EMIR in February 2014 a large number of trades have been sent to the repositories without UTIs or LEI’s, and even when these are included they frequently do not match.
This prevents the pairing of trades between and within repositories.
The absence or mismatch of a UTI prevents reporting firms from validating the trade data sent to the repositories and fulfilling their responsibility to ensure the accuracy of reported data.
In the triResolve repository reconciliation service, firms send directly or authorise the trade repositories to send their repository records to triResolve.
TriOptima claim that triResolve is able to match trades without UTIs or LEIs, which they allege cannot be achieved in the repositories.
The platform can also identify discrepancies across the approximately 60 additional data fields so firms can resolve the data problems and agree the identifiers and trade terms with their counterparties.
Raf Pritchard, CEO of triResolve, commented: “triResolve’s repository reconciliation is the only place where firms get a complete picture of all reported data fields for both sides of a transaction, and can work to correct the discrepancies.”
Currently triResolve has over 1200 firms using the service globally, reconciling over 75 percent of all global bilateral over-the-counter derivative trades. Exchange-traded transactions as well as repos and securities lending trades are also reconciled and cleared on triResolve.
