Within the last decade, the significance of regulation regarding the financial markets has become increasingly important. The financial crisis in 2008 was the trigger for the emergence of a larger scale of regulation. This has resulted in the G20 countries resolution to form a worldwide framework to ensure a high level of transparency in the financial markets. BearingPoint Software Solutions GmbH has developed a solution to fulfil the most significant regulatory obligations for the European Market which are mentioned below:
The foundation for transaction-based reporting requirements in Europe is EMIR, which was adopted by the European Parliament on March 29, 2012 and entered into force on August 16, 2012. According to EMIR, financial and non-financial counterparties (FC/NFC) and central counterparties (CCPs) shall ensure that every settlement, every change and termination of derivatives contracts – regardless of whether they are over-the-counter or exchange traded – shall be reported to a trade repository by the end of the following business day. The reporting scope has been defined by the European Securities and Markets Authority (ESMA), however the range of the scope may vary, depending on how the reporting obligations have been deemed by the selected trade repository. The Swiss government has developed FMIA/FinfraG against the background of international efforts to regulate the derivatives markets by consolidating various Swiss legislations in the area of financial market regulation. This regulation is highly dependent on the EMIR regulation and results in a variety of obligations for Swiss market participants. Reports according to EMIR can be generated under the TR module. For more detailed information regarding TR module, please refer to “TR module”.
The objective of the regulation (EU) No. 1024/2013 is to gather information about the money market activities and conditions in the European Monetary Union. To adhere to this provision, starting in April 2016, the ECB will survey statistical data on money market transactions involving the euro. Starting on July the 1st, 2016, the productive report shall be submitted to the Bundesbank by 6:30 a.m. CET of the trading day following the transactions day (t+1) or to the ECB by 7:00 a.m. CET. To fulfil the reporting obligation for this EU regulation, BearingPoint has created the new module “MMSR” under the ABACUS/Transactions product, which enables the user to generate a correct and timely report. For detailed information regarding MMSR module, please refer to “MMSR module”.