The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Markit Adds Data and Connectivity to MarkitServ to Support EMIR Reporting

Markit is meeting European Market Infrastructure Regulation (EMIR) reporting requirements by adding additional data fields and data to its MarkitServ reporting solution and connectivity to DTCC’s UK derivatives repository. The EMIR service went live last month after MarkitServ sent several million trade records to the DTCC derivatives repository on behalf of over one hundred firms and ahead of next week’s EMIR compliance deadline of 12 February.

Henry Hunter, managing director and global head of derivatives processing at Markit, says the EMIR reporting service is a logical extension of MarkitServ and is particularly useful in a market where participants must work to different regulatory regimes. In Europe, for example, both counterparties to a derivatives trade must report to a registered trade repository, while in the US, the requirement is for only one counterparty to report. Reporting timeframes also differ, with European regulation stipulating T+1 and US regulation demanding timing ranging from 30 minutes to 48 hours depending on the information that must be reported and the reporting counterparty.

Hunter explains: “We have configured the service using Unique Transaction Identifiers (UTIs) as required by EMIR to make sure both sides of a trade can report and are consistent. We have also configured the service so that trades can be reported in a number of jurisdictions if that is necessary.” The company will include Legal Entity Identifiers (LEIs) in EMIR reporting if they are available, obtaining the LEIs from customers and setting them up in static data tables so that they can be picked up as needed.

Hunter describes reporting under EMIR in two parts: generating the data needed to report and getting trades into a repository. He explains: “Trades can be sent to a repository from a risk management system, which is not particularly difficult. More difficult is data generation. The crux is the UTI and making sure it is shared as a common identifier between counterparties so that is not duplicated in the repository. This is where MarkitServ is different to other data connectivity solutions.”

MarkitServ is already used by over 100 organisations for high volume regulatory trade reporting, leading Markit to expect that a large number of these organisations will have to report under EMIR and will do so by extending their use of MarkitServ.

Related content

WEBINAR

Recorded Webinar: Data management for ESG requirements

Environmental, Social and Governance (ESG) investing is moving into the mainstream, requiring asset managers to develop ESG strategies that deliver for both the firm and its investors. While these strategies can outperform those that do not include ESG factors, there is no clear route to success in an immature market that is only just beginning...

BLOG

SimCorp Extends Partnership with SIX as it Builds Out Open Platform for the Buy-Side

SimCorp has extended its partnership with SIX to provide clients with global reference, pricing and regulatory data directly into SimCorp Dimension. The move responds to buy-side demand for greater flexibility and choice in investment operations, and continues SimCorp’s drive to create Open Platform, an open and value driven ecosystem to support the buy-side with greater...

EVENT

RegTech Summit Virtual

The RegTech Summit Virtual is a global online event that brings together an exceptional guest speaker line up of RegTech practitioners, regulators, start-ups and solution providers to collaborate and discuss innovative and effective approaches for building a better regulatory environment.

GUIDE

ESG Handbook 2021

A-Team Group’s ESG Handbook 2021 is a ‘must read’ for all capital markets participants, data vendors and solutions providers involved in Environmental, Social and Governance (ESG) investing and product development. It includes extensive coverage of all elements of ESG, from an initial definition and why ESG is important, to existing and emerging regulations, data challenges...