One Solution For All Reporting Regimes
ΜΑΡ FinTech’s Polaris Reporting Hub manages the complexity of multiple reporting regimes, enhancing and routing data to the competent international mechanisms and/or authorities in the required format.
FinfraG-DTR Derivatives Transactions Reporting Service
In June 2015, the Swiss Parliament adopted the Financial Market Infrastructure Act (FMIA), more commonly known as FinfraG. The Law came into force on 1 January 2016 and governs disclosure requirements for securities transactions. Pursuant to the Law, which aims to align the derivatives trading regulation with international standards, the Swiss Financial Market Supervisory Authority (FINMA) set out its related supervisory practice in a series of circulars.
The reporting obligations of transacting parties under the Law specify that all derivatives transaction data, including OTC and exchange‑traded derivatives, need to be reported to a recognized trade repository. The Swiss regulator has extended the list of reportable products to include non-standardised derivatives with underlying securities listed at a Swiss trading venue and published changes regarding exemptions from the disclosure requirements.
ΜΑΡ FinTech’s Polaris Reporting Hub is configurable to fully satisfy our client’s reporting obligations under FinfraG.
Canadian Derivatives Transaction Reporting (CDTR) Service
In September 2009, G20 leaders made a number of commitments regarding the operation of the over-the-counter (OTC) derivatives markets, including the statement that all OTC derivatives’ contracts should be reported to Trade Repositories in order to improve financial market transparency, mitigate systemic risk and protect against market abuse in the pertinent markets.
The Canadian Securities Act represents a key step towards the government of Canada’s commitment to establish a Canadian securities regulator. Canada is made up of 10 provinces, each with different securities laws. Much like a pre-MiFID Europe, there is fragmentation across markets and a need for a harmonised, single framework and increased transparency across these.
The derivative trade reporting rules were proposed, updated and finalised by Canadian provincial securities regulators working under a collaborative identity known as the Canadian Securities Administrators (CSA). The CSA was set up due to the G20’s commitment to establish a new regulatory regime relating to the trading of OTC derivatives in Canada, one that addresses TRs and derivatives data reporting. The derivatives reporting regulation applies to all 10 provinces in Canada; however, there is a need for local adaptation of the regulations in each province due to differences in securities laws.
The reporting of derivatives to a Trade Repository is unilateral; the TR rule outlines a hierarchy for determining which counterparty will be required to report a transaction.
Trade reporting is to be completed on a real-time basis. However, where it is not technologically possible to do so, the reporting counterparty must report as soon as possible but not later than T+1. Transactions that were entered into prior to the TR rule coming into force will be required to be reported, provided they have not expired or been terminated within a prescribed period after the TR rule comes into force (31st December 2014).
Three main types of data must be reported under the TR Rule:
- Creation data
- Life-cycle event data, including any amendments to derivatives data previously reported or novation
- Valuation data, which includes the current value of the transaction
ΜΑΡ FinTech’s Polaris Reporting Hub is configurable to fully satisfy our client’s reporting obligations under the Canadian Securities Act.
RΕΜΙT Reporting Service
According to the European Agency for the Cooperation or Energy Regulators (ACER), starting on 7 October 2015, market participants are obliged to report details of their orders and transactions in wholesale energy products under Article 2 (4) of RΕΜΙT.
Reportable orders and transactions include:
- Contracts for the supply of electricity or natural gas where delivery is in the EU
- Derivatives relating to electricity or natural gas produced, traded or delivered in the EU
- Contracts relating to the transportation of electricity or natural gas in the EU
- Derivatives relating to the transportation of electricity or natural gas in the EU
ΜΑΡ FinTech’s Polaris Reporting Hub Platform and its existing connectivity with Trade Repositories is designed to immediately take care of this process without delay, regardless of your organisation’s stage of RΕΜΙT regulation implementation.
Hong Kong Monetary Authority Derivatives Transaction Reporting (ΗΚΜΑ-DTR) Service
The global financial crisis in 2008 triggered a global movement to improve transparency and reduce counterparty risks in the over-the-counter (OTC) derivatives markets, resulting in reforms to the OTC derivatives markets on various fronts. The reforms adopted by the international regulatory community include requiring all OTC derivatives transactions to be reported to trade repositories (TRs) and that all standardised OTC derivatives transactions be cleared at central counterparty (CCP) clearing facilities.
To meet international standards, the ΗΚΜΑ announced in December 2010 to establish a TR in Hong Kong, developing a link between the TR and the CCP for OTC derivatives to be launched by Hong Kong Exchanges and Clearing Ltd., to allow eligible transactions to be passed to the CCP for central clearing.
The ΗΚΜΑ also worked in concert with the government and the Securities and Futures Commission (SFC) to build a regulatory regime for the OTC derivatives markets under the Securities and Futures Ordinance (SFO), including requirements for mandatory reporting to the TR of the ΗΚΜΑ and mandatory clearing at designated CCPs.
In August 2013, the ΗΚΜΑ introduced interim reporting requirements to require Licensed Banks (LBs) to report OTC derivatives transactions with another LB to the TR of the ΗΚΜΑ. A set of Securities and Futures Rules was introduced to the Legislative Council for negative vetting in June 2015 with the effective date of the Reporting Rules being 10 July 2015.
ΜΑΡ FinTech’s Polaris Reporting Hub is configurable to fully satisfy our client’s reporting obligations under ΗΚΜΑ.
White Label Program
ΜΑΡ FinTech’s White Label service is a cost-effective and efficient solution for service providers and institutions wishing to offer Regulatory Technology Solutions to their clients. It provides our partner with easy access to a high-margin business and minimises operational costs for both them and their clients.
The White Label Program enables service providers and institutions to handle their clients’ regulatory technology requirements via a single user-friendly environment through our Polaris Reporting Hub Platform.
This service is fully customizable, scalable and can be tailored by the ΜΑΡ FinTech team in accordance with the partner’s needs and regulatory obligations.
ΜΑΡ FinTech offers full training and support throughout the implementation and post-implementation phases to ensure that the partner manages a successful and top-quality Regulatory Technology Solutions business.
The combination of our proprietary technology and knowhow gives our White Label partners a competitive advantage. Our Polaris Reporting Hub brings together all essential components to deliver the perfect choice for service providers and institutions to satisfy their clients’ needs to achieve Regulatory compliance.