LSE/DTCC regulatory reporting tie-up shows the way for collaboration
Douglas: avoiding cost duplication
The London Stock Exchange and The Depository Trust & Clearing Company are partnering to provide clients with a connection to the LSE’s UnaVista Approved Reporting Mechanism. The service will allow DTCC clients to comply with the Markets in Financial Instruments Regulation through their current connection from DTCC’s Global Trade Repository.
“What we are trying to do is reduce costs for the industry,” said Andrew Douglas, chief executive of GTR Europe for DTCC. He said that DTCC takes the view that to duplicate an existing capability in the marketplace was not cost-effective. “We asked, shall we have a repeat of EMIR where multiple trade repositories were created from scratch or look at what exists in the market, and felt the former approach would create unnecessary expense for clients – there are six registered ARMs in the UK. We therefore came to the conclusion that we should outsource, effectively.”
Douglas said that he expects this sort of approach to become more common. “I would hope that this is an example of how infrastructures should look at how they do things in future – you don’t have to build everything yourself.”
UnaVista and DTCC currently jointly process around 20 billion regulatory reports annually, across all asset classes and global markets.
Through this connection, GTR users will be able to submit a single report, combining the MiFIR and EMIR data elements: MiFIR relevant data will be extracted and routed to UnaVista for validating and reporting to the relevant pan-European competent authorities. Users will also benefit from access to the UnaVista interface where they can manage exceptions and get advanced business insight.
Users can access UnaVista’s MiFIR test environment now, ahead of the MiFIR reporting go live in Q1 2017.
UnaVista and DTCC are both approved Trade Repositories for the EU derivative regulation EMIR, and already have a connection to pass relevant transactional data to each other for reconciliation purposes. UnaVista also routes transactions on behalf of its clients to DTCC for global derivatives reporting.
Mark Husler, chief executive of UnaVista said “LSEG is delighted to be partnering with DTCC to offer their clients a complete MiFIR reporting service, which again demonstrates our commitment to Open Access. MiFIR is designed to improve financial market transparency and both companies want to act early to respond to customers demand and ensure clients have as much time as possible to prepare for the upcoming regulatory changes. DTCC’s clients will benefit from UnaVista’s well-established and proven regulatory
