Xtrakter, a leading provider of capital market data, trade matching and regulatory reporting, is now reporting derivative transaction data for clients to the UK’s Financial Services Authority (FSA) using a newly implemented industry format – the Alternative Instrument Identifier (Aii).
In compliance with MiFID, the use of Aii for transaction reporting across Europe for derivatives admitted for trading on regulated markets will become compulsory for reporting to the FSA from 13 November 2011.
Using Xtrakter’s TRAX interface, which is an approved one-stop regulatory reporting solution, clients have a cost-effective means to comply with all of their transaction reporting obligations. By supporting both batched and real-time messaging, the TRAX platform has the flexibility to suit all client integration models.
Currently, TRAX enables its users to report derivatives transactions using Aii to the Dutch and French regulators, namely De Autoriteit Financiële Markten (AFM) of the Netherlands and Autorité Des Marchés Financiers (AMF) of France.
Yannic Weber, Chief Executive Officer of Xtrakter, commented: “Our close collaboration with clients, trade associations and national regulators has enabled us to jointly deliver an industry-accepted format tailored to the specifics of derivatives contracts. Use of the Aii format will drastically lower operational risks, in as much as clients will be greatly helped with their reconciliation of valid derivatives trades, with invalid reports automatically rejected before onward reporting.”
Weber continued: “Regulators across the globe have been demanding far greater levels of transparency around the composition of derivatives. The Aii format delivers this level of precision by providing the derivative type, trading venue, maturity, strike price, among other pertinent information within its scope. Moreover, firms availing of the new service will not run the risk of paying heavy fines as a result of non-compliant or erroneous reporting methods.”