01.12.2014 - EMIR: As of Dec. 1st, 2014 the UTI (Unique Transaction Identifier) will be required for Trade Repository Reporting
The European Securities and Markets Authority (ESMA) has tightened the rules for reporting derivative transactions to Trade Repositories. As of Dec. 1st the UTI, besides additional other fields, is mandatory for EMIR reporting. The UTI will facilitate the reconciliation of the reported derivative transactions between two counterparties by the Trade Repositories.
In order to comply with the reporting deadline of T+1, counterparties so far very often use self-generated numbers or they leave the field open. The new ESMA rules now no longer tolerate such an approach.
The use of an UTI, that is reconciled with the counterparty, is generally assured anytime for trades executed via an electronic trading platform, such as for example 360T.
A number of banks have adapted the process of UTI generation to these new ESMA rules. They directly source the UTI from the electronic trading platform for subsequent use in the reporting to the Trade Repository.
Trading derivatives via an electronic trading platform has the crucial advantage over the still widely-used telephone dealing, that the UTI generated by the trading system is provided immediately to the two counterparties after the trade has been successfully executed. Thus, both counterparties can timely use the UTI provided by the trading system for the generation of the data export for EMIR.
When you happen to use on the one hand 360T for your derivative trades, and on the other hand the Treasury module of SAP (SAP TRM), then it might really be worth discussing with your bank partners, if they also use the UTI provided by 360T.
Our solution, the DEALMANAGER for 360T, allows for the processing of the UTI provided in the xml-file from 360T and to automatically store this information in the designated data field of your SAP Treasury solution. If you furthermore use the SAP standard functionality for the generation of EMIR messages, the UTI would timely be available to you for the automated reporting to the Trade Repository.
We are looking forward to assisting you with our solutions and our know-how in automating your derivative trading process and in helping you to timely generate the required data export for EMIR.
For further information, please do not hesitate to contact us.