25.09.2014 - Informative meeting on the Swiss Financial Market Infrastructure Regulation (FinfraG) and the European Market Infrastructure Regulation (EMIR) in Zurich.
Eprox Consulting AG and InCube Advisory AG were happy to welcome on September 23rd approximately 40 participants to an informative meeting on FinfraG / EMIR. The event gathered representatives from banks, insurance companies and corporates. The first presentation was given by Dr. Andreas Felber, Partner, InCube Advisory AG and outlined the background, scope and motivation of EMIR and explained the route from EMIR to FinfraG. Dr. Andreas Felber explained in detail the various differences between the EMIR regulations and FinfraG. He closed his presentation with an overview of the requirements outlined in the draft of the Swiss Financial Market Infrastructure Regulation as published on Sept. 3rd, 2014.
The speech of Dr. Andreas Felber on the topic „FinfraG / EMIR – Current Status – What you need to know“ can be downloaded from our website via the following link: Document Download Presentation of Dr. Felber (InCube Advisory)
Reto Ziltener, Head Prime Services, Zürcher Kantonalbank explained in his presentation the OTC derivatives clearing process and pointed out to the upcoming collateralisation obligation foreseen by BCBS IOSCO, which will affect all non-centrally cleared OTC derivative transactions as of December 2015 also for Swiss counterparties. Reto Ziltener clarified the different strategic options, which can be followed by market participants to clear OTC derivatives through a central counterparty. He further explained the clearing and margining process of centrally cleared OTC transactions.
The speech of Reto Ziltener on the topic „OTC Derivatives Clearing in Practice“ can be downloaded from our website via the following link: Document Download Presentation of Reto Ziltener (Zürcher Kantonalbank)
The closing presentation was held by Gilbert Lüthy, Senior Consultant, Eprox Consulting AG and was dedicated to the subject „Trade Repository Reporting & Risk Mitigation Techniques“ under EMIR and FinfraG. The first part of his presentation on ,,Trade Repository Reporting” focused on the key aspect of the unilateral reporting obligation under FinfraG for Swiss counterparties in comparison to the dual reporting obligation under EMIR for EU-counterparties. Gilbert Lüthy explained the complexity, which is linked to the reporting obligation and its implications on IT infrastructure. Furthermore he outlined the selection criteria, which need to be considered when choosing a Trade Repository. In addition Gilbert Lüthy clarified the significance of these various criteria for a big financial company compared to a non-financial institution.
The presentation on the “Risk Mitigation Techniques” focused on a comparison of the requirements for Swiss market participants between the current situation in Switzerland and the upcoming new requirements of BCBS IOSCO and FinfraG.
The speech of Gilbert Lüthy on the topic „Trade Repository Reporting & Risk Mitigation Techniques“ can be downloaded from our website via the following link: Document Download Presentation of Gilbert Lüthy (Eprox Consulting)
The event closed with a very animated discussion of various questions raised by the audience. It was very interesting to share the views of the different market participants from the financial (banks / insurance companies) and the non-financial (corporates) sector.
We also very much appreciated the presence of the SIX Group at the event. Representatives of the SIX Group informed the audience about their plans to establish a Trade Repository in Switzerland.
Please feel free to contact us in case you would like to discuss any of the topics mentioned in the presentations in further detail.
Should you have open questions or uncertainties regarding the extent of your obligation to assure compliance with EMIR and FinfraG, please contact one of our consultants directly or let us know your questions by addressing them to us via our Contact Request Form.