News: Reconciling Across TRs | TriResolve have an approach

24 January 2014 | Bill Hodgson

One of the deferred problems with the EMIR approach to Trade Reporting is post Feb 12th when ESMA requires all the TRs to attempt to match the submissions in a multi-lateral mashup. EMIR allows each party to a trade to report to their chosen TR, nice to have freedom of choice, but each TR has a difference technology platform and data specifications. For ESMA to re-assemble this broken mirror into something coherent, each TR must attempt to compare the same trade submission using LEI and UTI as a key, and provide matching results back to submitting parties.

Anyone who has worked in Collateral Management will know the pain of trying to reconcile large OTC portfolios without using standard data formats or matching tools - this pain is about to be inflicted on firms reporting under EMIR when the entire industry discovers the disparity of systems and approaches being used to submit trade and positon data. If your trade is reported as a mis-match - how do you investigate the cause? The TR can only alert you to the status, but not divulge the other parties data, it doesn't have permission.

One solution is to have a team of spreadsheet operators at the reader and a hotline to call your counterparts to request the necessary data to investiagte the breaks - this approach will be fraught with data security, format and timing issues. Hence the announcement of a service by TriOptima to provide the glue between as many TRs as possible to make resolving these breaks much easier.

Announcement copied below, read the original here

Repository reconciliation: validating, aligning & ensuring data accuracy

As global regulators adopt reporting requirements for OTC derivatives, and trade repositories proliferate around the world, the potential for discrepancies and regulatory misinterpretations increases. While the challenges under each regime are different, the goal is the same. You want to make sure that the data reported to the repositories is accurate.

TriOptima has expanded its existing triResolve service to develop a new trade reporting validation functionality that enables firms to reconcile and verify the accuracy of data sent to trade repositories.

With authorized data feeds from registered trade repositories, triResolve acts as a central hub to validate and reconcile repository data. The triResolve process identifies any discrepancies across the trade repositories and gives users the tools to investigate and resolve differences.

Different jurisdiction's reporting models pose different challenges. Download a more detailed fact sheet on your relevant jurisdiction below. (on the TriOptima website)

Getting Started

The repository reconciliation functionality is part of the standard triResolve service and can be accessed via a regular triResolve user account. If you are an existing subscriber, please contact your local TriOptima representative.

If you are not currently a triResolve client, please get in touch to learn about the triResolve service and repository reconciliation.


How much of this need goes away if in effect singular responsibility for reporting all sides of one originally executed trade is given to one of the two cpties for bilateral and to the CCP for cleared?
Also how much of it is due to the subset issue - that each TR will only see full portfolios for e.g. US persons for CFTC but partial portfolios for other parties? i.e. reconciling portfolios between TRs in different regimes?