About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Swift Extends Messaging Services to Support Derivatives Trade Reporting under EMIR

Subscribe to our newsletter

Swift has extended its messaging solutions to support derivatives trade reporting under European Market Infrastructure Regulation (EMIR) that comes into play on February 12. The organisation is offering two solutions, one based on Swift FIN confirmation traffic and the other on Swift FileAct.

Recognising the potential for Swift members to reuse their investments in the network infrastructure for EMIR reporting, Swift started to develop some of its existing services about 18 months ago, adding data and processes required for EMIR reporting.

The solution based on Swift FIN confirmation traffic is FINInform, essentially Swift’s FIN Copy service. Swift has extended its derivatives trade confirmation messages to include support for all the data elements, such as legal entity identifiers for counterparties to a trade, required for EMIR reporting and copies of these messages are sent directly to trade repositories at the same time as they are sent to counterparties.

The FINInform service is only suitable for trades confirmed over Swift, but as Swift provides confirmation for foreign exchange derivatives trades it should have broad appeal. The service is available for testing and will be in production within the next couple of weeks.

Swift’s second EMIR reporting solution is FileAct, which covers all derivatives asset classes and supports any file format. Users of this service create the data required for EMIR reporting, put it in a file and use Swift to carry the file to a trade repository.

This service is available immediately. One early adopter is Belfius Bank, which is using FileAct to report derivatives trades to European trade repository Regis-TR. Luc Goossens, project management, financial markets, at the bank, says: “We considered using a web service-based solution to send trade details to Regis-TR, but we opted for Swift FileAct because it offers better availability and reliability, allows us to send large files and supports better error handling through automated message monitoring.”

Joe Halberstadt, senior treasury and derivatives market manager at Swift, says the decision on whether to use FINInform or FileAct depends on the nature of a firm’s business, the different types of derivatives it trades and whether it can build the data files for FileAct. He suggests domestic European corporations and investment managers will take up the solutions rather than international organisations, many of which already have derivatives reporting in place as a result of CFTC requirements under Dodd-Frank regulation.

Halberstadt adds: “These solutions will typically be used by organisations that already use Swift and can build on their existing capabilities, but some firms may use EMIR reporting as the business case to join Swift. I expect there will be some new joiners, but not a huge flurry.”

While the focus is currently on derivatives reporting, Swift is working with MarkitServ to support foreign exchange derivatives clearing, a discipline noted in EMIR and Dodd-Frank regulation, but awaiting a deadline for enforcement.

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: How to maximise the use of data standards and identifiers beyond compliance and in the interests of the business

Date: 18 July 2024 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Data standards and identifiers have become common currency in regulatory compliance, bringing with them improved transparency, efficiency and data quality in reporting. They also contribute to automation. But their value does not end here, with data standards and identifiers...

BLOG

Cappitech Regulatory Reporting Survey Insights

By Struan Lloyd, managing director, head of S&P Global Market Intelligence. Recently, we conducted our 6th annual Cappitech Global Regulatory Reporting Survey that aims to capture the pulse of the trade and transaction reporting industry. The survey results were released at the end of 2023 and revealed that lack of resources and poor data quality...

EVENT

TradingTech Summit London

Now in its 13th year the TradingTech Summit London brings together the European trading technology capital markets industry and examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

Regulatory Data Handbook 2023 – Eleventh Edition

Welcome to the eleventh edition of A-Team Group’s Regulatory Data Handbook, a popular publication that covers new regulations in capital markets, tracks regulatory change, and provides advice on the data, data management and implementation requirements of more than 30 regulations across UK, European, US and Asia-Pacific capital markets. This edition of the handbook includes new...