Following the financial crisis in 2008, shortcomings were highlighted, such as a lack of counterparty risk management and a lack of transparency within the Over The Counter (OTC) derivatives market. In response, the European Market Infrastructure Regulation (EMIR) was designed to reduce the counterparty risk of OTC derivative markets and to increase transparency within the markets.
Salient features of EMIR:
- EMIR is the regulatory basis for the new requirements in the reporting of derivative contracts in Europe.
- Financial and non-financial counterparties (NFC) as well as multi-lateral development banks, public authorities, the European Financial Stability Facility, and the European Stability Mechanism are subject to these reporting duties.
- Both counterparties of a contract are required to submit their parts of the transaction to the trade repository and avoid multiple reports of the same contract.
- As a part of the reporting obligation, the details of any derivative contract concluded, modified or terminated must be reported to a trade repository no later than the working day following such conclusion, modification or termination.
Since the reporting and compliance norms of EMIR requires significant paperwork and operational evaluation, financial institutions are outsourcing their EMIR compliance reporting to their strategic partners/vendors, to focus on their core business.
What do we offer?
VirtusaPolaris unique web-based solution can address all the EMIR reporting requirements in three simple steps.
- Firstly, we identify and extract the data for reporting
- The next step is to transform the data using Emiris converter so that it is Emri complaint
- Finally the data is sent to a trade repository before forwarding the same to Esma.
- EMIRIS is designed specifically for EMIR legislation, not re-purposed from Dodd-Frank
- Full STP; extracting data, report creation and submission to repository
- Scalable with regard to architecture, database and data model
- A unique Software as a Service (SaaS) solution, 100% secure
- Independent of your Investment Management system (IMS)
- No additional module or infrastructure needed in your IMS
- Access to the solution through web interface to:
- Approve data sent to TR
- Drill down to analyze your data
- Get statistics on transferred data
- Access reconciliation status (monthly or weekly)
- Highest quality maintenance, support and surveillance