Q: Why is trade reporting required under EMIR?
A: EMIR regulations are part of a global response to the credit crisis of 2008 and the desire on the part of the supervisory authorities to increase market transparency and to reduce systemic risk in the market. Trade reporting is a major component of enhancing transparency in the opaque world of derivatives, and TR Compare offers you a guide to deciphering the ins and outs of the evolving regulatory landscape.
Q: What are the requirements for trade reporting?
A: All derivatives transactions executed by the EU based trading entities must be reported to an ESMA approved Trade Repository. All principals to the transactions have an obligation to report on a timely basis. Trade reporting is required for both bilateral over the counter (OTC) transactions and exchange traded derivatives. TR Compare offers users a link to all of the relevant EMIR regulations and related questions and answers that have been published over the last two years.
Q: Do I have to do the trade reporting myself? Can’t my counterparty do it for me?
A: TR Compare explains how one can delegate the reporting activity to others and how this can impact the cost of fulfilling the obligation.
Q:.How will TR Compare help me choose a repository?
A: There are presently six approved trade repositories in the EU. Each repository offers a unique value proposition for its users. TR Compare will help you determine which approach best suits your particular operating model and your individual needs. The types of assets you trade, where you trade and who your counterparties are all can impact your choice.
Q:.How much will trade reporting cost?
A: EMIR obligates the trade repositories to set fees based on operating costs without subsidization from other lines of business. However, there are no stipulations about the structure of the fees, and each of the trade repositories has developed a unique framework for their fees. TR Compare offers users a Cost Estimator that will predict fees based on a user’s particular volume and mix of derivative transactions
How will TR Compare help me, if I’ve already set up a reporting relationship?
A: It is important in the first instance to fulfill the regulatory mandate, which began on 12 February 2014. However, once the basic obligation is satisfied, you may find that there are other solutions that would work more effectively with your operating model. TR Compare offers an easy to use comparison of these alternatives including the links that each trade repository has to middleware and other service providers. Additionally, firms may find that other fee structures will afford lower costs.
Q:: How does TR Compare differentiate my needs from others?
A: The EMIR trade reporting obligation is only one of many regulatory requirements that impact firms that trade derivatives. TR Compare identifies several factors that will be unique to each trading party and suggests which repository provides the best solution to the user’s needs.
Q:Why shouldn't I do the research myself?
A: With TR Compare, Thomas Murray IDS has pulled together all of the relevant “regs,” operating model concerns, and value for money comparisons to ensure that all of the important factors are taken into consideration. TR Compare provides critical analysis and tools to save you time and money.
For further information, please contact:
Director Business Development
Thomas Murray Investor Data Services