The London Stock Exchange Group (LSEG) and the Depository Trust & Clearing Corporation (DTCC) have undergone a partnership to provide clients with a connection to UnaVista’s Approved Reporting Mechanism (ARM), according to an LSEG statement.
The newly integrated service will allow DTCC clients to comply with the Markets in Financial Instruments Regulation (MiFIR), whereby utilizing their existing connection from the DTCC’s Global Trade Repository (GTR).
MiFID II has been one of the ongoing points of discussion for brokers as the countdown for the passage of legislation draws nearer. Earlier today, ITG (NYSE:ITG) published a composite of frequently asked questions (FAQs) to help assist asset managers in preparing for and dealing with upcoming European regulations surrounding research payments.
As for MiFIR however, the reporting requirements will be bolstering the existing European Market Infrastructure Regulation (EMIR) post-trade reporting requirements for derivatives trading activities. Between the two entities, both UnaVista and DTCC jointly process around 20 billion regulatory reports annually at the present, dealing with all asset classes and global markets.
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Per the newly launched offering, GTR users will now be able to submit a single consolidated report that assimilates both MiFIR and EMIR data elements. Consequently, MiFIR relevant data will be garnered and sent to UnaVista for validating and reporting to respective European competent authorities. Conversely, users of the new offering will also be able to benefit from access to the UnaVista utility for advanced business insight. MiFIR reporting is scheduled to take effect only in Q1 2017, despite the ability to access UnaVista’s MiFIR now.
According to Mark Husler, CEO of UnaVista in a recent statement on the partnership, “LSEG is delighted to partner with DTCC to offer their clients a complete MiFIR reporting service, which again demonstrates our commitment to an Open Access approach which benefits customers and the market overall.”
“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 reporting technology, which has made it the largest MiFID ARM in Europe,” he noted.
“We are pleased to be partnering with LSEG on this important initiative. As additional reporting requirements such as MiFIR come to market, we believe it is critical that all service providers look to leverage rather than duplicate existing infrastructure to ensure the overall operational cost burden to the industry is minimized. With this joint solution, users can continue to satisfy MiFIR and EMIR regulatory mandates leveraging a single platform, DTCC’s GTR,” added Andrew Douglas, CEO of GTR Europe for DTCC, in an accompanying statement.