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Starting immediately, Deutsche Börse, together with the European Trade Repository REGIS-TR, is helping clients to meet regulatory requirements under the new MiFID II European financial directive. REGIS-TR is jointly run by Deutsche Börse’s subsidiary Clearstream and Iberclear (BME Group). The Markets in Financial Instruments Directive (MiFID II) will enter into force in 2017.
Deutsche Börse is offering clients two services here: firstly, the MiFID II Transaction Reporting Service, which enables clients to submit the relevant data (e.g. executing trader and reason for transaction) to the national competent authorities. This data must be reported through a so called “authorised reporting mechanism” (ARM). REGIS-TR will apply for ARM status and act as the ARM for Deutsche Börse.
Secondly, Deutsche Börse’s MiFID II OTC Trade Reporting Service is an efficient and straightforward option for clients to meet the transparency requirements for OTC transactions under the new directive. Transactions subject to these requirements will undergo quality assurance and be published in real time via an “approved publication arrangement” (APA). Deutsche Börse will be applying for APA status as soon as the competent authority begins accepting registrations. The reported trade information will be disseminated worldwide via Deutsche Börse's data feeds.
Deutsche Börse provides market participants and supervisory authorities with a forum for exchanging information in the form of regular working groups on MiFID II/MiFIR in Frankfurt, London and Paris. This allows requirements to be addressed in a timely manner by regulators and clients, and solutions to be developed jointly.
MiFID II will have a significant impact on European financial markets, along the entire process chain. While MiFID I only applied to shares, MiFID II covers additional instrument classes, such as ETFs, certificates, bonds, structured financial products and derivatives. The objective is to make trading across all asset classes more transparent. For market participants, the challenge will be to collect all the necessary data, report it to the relevant authority on time and display it historically.
Over 1,800 clients around the world are currently using regulatory reporting services provided by Deutsche Börse and REGIS-TR. Of these, over 250 are using the Deutsche Börse MiFID I service and more than 1,300 clients use REGIS-TR for EMIR reporting. The two entities report more than 7,000,000 transactions daily in line with EMIR, and 15,000,000 transactions monthly in line with MiFID I to supervisory authorities in various countries. This also allows reports to be submitted to various regulators and trade repositories, even within a single company. Reporting services for other regulations will continuously be added. Corresponding services for REMIT, FinfraG, Dodd Frank and Securities Finance Transaction Reporting are next in the pipeline.
“Deutsche Börse has already been offering reporting solutions for many years, including for EMIR and MiFID I. With our MiFID II services, we will now also support market participants in meeting challenges posed by the new regulation, from one source,” said Hauke Stars, member of the Deutsche Börse Executive Board responsible for IT & Market Data + Services. “With a global solution, we enable our clients to keep their costs in check – both acquisition costs as well as the costs of adapting to additional regulatory changes.”
“An integrated reporting offering makes perfect sense,” said Elena Carnicero, CEO of REGIS-TR. “Our services are highly complementary. As a licensed Trade Repository, REGIS-TR is already widely connected to the network of European national competent authorities and was one of the first Trade Repositories to be approved for EMIR. This combined with a mature MiFID I service and value added products and services on top means that together, REGIS-TR and Deutsche Börse are uniquely positioned to be the de facto European regulatory reporting hub. It is very important for our customers to have a trusted partner who can help them meet their regulatory obligations in an efficient and cost-effective manner.”
Deutsche Börse is one of the world’s leading service providers for the securities industry with a product and service offering for issuers, investors, intermediaries and data vendors. The Group's offering covers the entire value chain from trading, through clearing, to settlement and custody of securities. The Market Data + Services business area comprises the Group's broad market data offering as well as external technology and network services. Products and services include real-time and historical trading data from the Group trading venues Eurex and Xetra, as well as from cooperation partners, but also platform-independent exclusive trading signals such as economic indicators and financial news. The area also markets reference data for more than 1,000,000 securities, some 10,825 indices including the STOXX and DAX index families, an excellent trading infrastructure and reliable network services.
REGIS-TR is a central trade repository for derivative transactions across multiple product classes. It reduces the administrative burden and optimises operating management of such transactions. The registry collects and administers details of all transactions reported by the participants, and gives market participants and supervisors an unprecedented and condensed overview of the related derivative positions. REGIS-TR already meets all published and planned supervisory requirements, and is aimed at financial and non-financial institutions. The trade repository strives to offer flexible terms and conditions depending on the profile and needs of potential clients and derivative market players.
More than 40 percent of its client base is from the corporate sector, and 10 percent from the energy sector, which are already registering a high number of financial derivatives. As a joint venture of BME and Deutsche Börse Group, REGIS-TR now also has internal competencies at the European Energy Exchange and MEFF Power.