cme european trade repository · lessons learned from u.s. sdr start the process early to...

CME European Trade Repository

CME Global Repository Services

http://www.cmegroup.com

© 2013 CME Group. All rights reserved. © 2013 CME Group. All rights reserved.

• CME Global Trade Repository Solution

• CME European Trade Repository Overview

• Regulatory Reporting Obligations Overview

• Key Dates

• ESMA Identifiers

• Technical Components and European Trade Repository Roadmap

• Lessons Learned

• Onboarding

• Resources

2

Contents



Premium, simplified, efficient and low cost regulatory

reporting solutions for all market participants

CME European Trade Repository and CME Swap Data Repository for multi-jurisdictional reporting

- www.cmegroup.com/etr and www.cmegroup.com/sdr

Solution for cleared and bilateral transactions across rates, credit, fx, equities, and commodities

Proven reporting systems and processes; extensive regulatory experience

Per ticket fee model with no additional charge for modifications to a report

- European Trade Repository fees quote available upon request

World class customer service

Maximizes lightweight ClearPort technologies and middleware clearing connectivity

Straight Through Processing:

- one message for clearing, reporting, multiple jurisdictions

- full reconciliation reports


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http://www.cmegroup.com/etr

http://www.cmegroup.com/sdr


© 2013 CME Group. All rights reserved. © 2013 CME Group. All rights reserved. 4


Transactions reported

across multi-asset classes

19+ Million

Global Customers

400+ Accepts:

Exchange Traded

Cleared OTC

Bilateral OTC

Hour Access

24 Real-time

Technology

Simple. Experienced. Responsive. Diverse.

Multi-Jurisdiction



Multi-asset class offering

- CME has applied to ESMA for registration as an EMIR trade repository, covering all cleared

and bilateral exchange traded & over-the counter traded products across all asset classes:

Interest Rates, FX, Credit, Equities, & Commodities

- Expect to be approved in first group of TRs and ready to support day 1 reporting

European Based Solution

- London based legal entity with local business and support staff

Test Environment

- Documentation available at www.cmegroup.com/etr

- Test environment for bilateral and non-CME cleared (listed and OTC) transactions available

Technologically Efficient

- Real-time trade blotter updated as transactions are reported

- Flexible upload submission reports via API and CSV

- Customizable reconciliation reports available ad hoc or End of Day

Delegated Reporting

- CME Clearing and CME Clearing Europe to offer delegated reporting

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CME European Trade Repository Service




Overview

What must be reported? All derivatives executed and any modification or termination; eventually collateral

Includes Exchange Traded Derivatives (“ETD”) and Over-The-Counter (“OTC”)

Asset Classes: Rates, Credit, FX, Commodities, and Equities

By whom? Dual reporting - All financial and non-financial counterparties and CCPs - this may be

delegated provided there is no duplication in reporting

Organized Trading Facility (“OTF”) transactions to be reported, without duplication, by

counterparty; however, OTF can be delegated provider

To whom? A registered or recognised trade repository

How quickly? Must be reported no later than the following working day (“EOD T+1”)

When does it start? OTC and ETD: 90 days after registration of first trade repository

12 February 2014 is first possible date to report

What has to be reported? Counterparty data – 26 fields (participant IDs, valuations, etc.)

Common data – 59 fields (trade details, clearing, contract type, etc.)

What records must be kept? Any derivatives concluded and modified for at least 5 years following termination

Is there any back-reporting? Trades outstanding on 16 August 2012 and still outstanding at the reporting start date -

within 90 calendar days

Trades outstanding on 16 August 2012 or were entered into on or after this date and are

not outstanding on or after the reporting start date – within 3 years

EMIR Reporting Obligation

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Key Regulatory Reporting Differences

7

WHO

Hierarchy

One side reports

WHAT – Fields

Primary Economic

Terms – more details

WHEN

As Soon As

Technologically

Practicable (real-

time)

WHAT – Products

Only Swaps

WHO

All counterparties

Each side reports

WHAT- Fields

Common and

Counterparty Data –

85 fields

Includes collateral

WHEN

End of Day T+1

WHAT – Products

Swaps + Listed

Derivatives

Dodd-Frank EMIR

Dodd-Frank and EMIR are each complex in their own ways



Key Dates

8

http://www.esma.europa.eu/news/Trade-Repository-registration-approval-not-expected-7-November-reporting-begin-February-2014?t=326&o=home

ESMA to register Trade Repositories as early as 7 November 2013

Reporting to commence as early as 12 February 2014



























ESMA Identifiers

Entity Codes – LEI

- Interim ID – any interim solution that is adopted for European entities subject to the reporting

obligation needs to be in line with the technical specifications agreed by the Financial

Services Board

- Once endorsed, LEIs will ID all financials, NFC, Brokers, CCPs & beneficiaries

- Endorsed Interim LEI providers found at: www.leiroc.org/publications/gls/lou_20131003_2.pdf

Trade Codes – UTI

- It is the responsibility of the counterparties to a contract to generate a UTI

- Should be reported by each counterparty to allow for pairing of contracts.

Product Codes – UPI

- UPI should be generated to identify the reported products

- Taxonomy should cover the range of derivatives products traded under EMIR

- Concerns that this will not be available by implementation date

- In the absence of a globally agreed product identifier, ESMA agreed that ISIN, AII and CFI

may be used to correctly identify the derivative product

http://www.leiroc.org/publications/gls/lou_20131003_2.pdf



Connectivity

Approach

- Real-time systems

- Leverage ClearPort gateway & workflows

- Universal front end experience (API and CSV)

- Back end support of multi-jurisdictional reporting complexities

API Submission

- ClearPort API (FIXML) over MQ or HTTPS web services

- Leveraging ClearPort APIs and deploying Universal, DFA and EMIR native operations

CSV Submission

- Asset class specific templates

- GUI upload, secure FTP, or web services

Reconciliation Reports

- Customizable reports, by any attribute (i.e. product, LEI, date), available ad hoc or end of day

Documentation

- Technical CSV specs available at www.cmegroup.com/etr

- User Guide available upon request




Roadmap

Currently Available

- Test environment for bilateral OTC and non-CME cleared (both listed and OTC) reports

- CSV Technical Specifications* available at www.cmegroup.com/etr

- User Guide* available upon request

- User Agreement* available upon request

- Fee quote* available upon request

Near-term deliverables

- API specifications available in late October

- Support for equities and CME-cleared transactions in mid-November

- User working group

Email [email protected] for documentation and information

*Subject to change and registration as Trade Repository under EMIR.


mailto:[email protected]



European Trade Repository User Interface

Facilitates upload of CSV files to CME ETR to comply with all reporting obligations

Ad hoc flexible reporting downloading capabilities – reconciliation reports customizable by any field

Supports cleared and bilateral transactions

Customize and save queries for streamlined access

CME SDR Demo video (highly similar to CME ETR) – www.cmegroup.com/repositorydemo

European Trade Repository

http://www.cmegroup.com/repositorydemo



Lessons Learned from U.S. SDR

Start the process early to understand flows

- Speak with counterparties, back office service providers, affirmation platforms, prime brokers,

clearing firms, clearing houses, etc.

- Understand both bilateral and cleared flows

- Determine your counterparty’s delegated reporting capabilities

Selecting Trade Repository and Service Providers

- Technology & Connectivity

- Data fields and simplicity

- Reports

- Jurisdiction

- Support

- Products– OTC vs. ETD

- Costs – transactional vs. maintenance models

Beat the Rush

- ESMA scope is larger than that of Dodd-Frank



User Onboarding Steps and Next Steps

Register for a Legal Entity Identifier from a Pre-Local Operating Unit (LOU)

- www.leiroc.org/publications/gls/lou_20131003_2.pdf

Complete the CME European Trade Repository User Agreement

- Proposed version* available upon request and LEI required for registration

- Send to [email protected]

Use CME European Trade Repository Systems

- Access to test environment available now

Repository Business Team - [email protected]

Repository Support Team - [email protected]

Hedge Funds - [email protected]

Corporates/Commercials - [email protected]

Asset Managers - [email protected]

Intermediaries - [email protected]

Banks - [email protected]

*Subject to change and registration as Trade Repository under EMIR.

http://www.leiroc.org/publications/gls/lou_20131003_2.pdf











Trade Repository Resources

Business Team: [email protected]

Support Team: [email protected]

General Website

- http://www.cmegroup.com/market-data/repository/cme-repository-service-emir.html

CME European Trade Repository User Agreement

- Proposed version* available upon request from [email protected]

CME SDR User Interface Demo

- www.cmegroup.com/repositorydemo

- Highly similar system compared to CME ETR, accounting for regulatory differences

Technical Specs – Upload and Downloadable Reconciliation .CSV Templates

- Technical CSV specs available at www.cmegroup.com/repositorydocumentation

- User Guide available upon request



http://www.cmegroup.com/market-data/repository/cme-repository-service-emir.html












http://www.cmegroup.com/repositorydemo

http://www.cmegroup.com/repositorydocumentation



Disclaimer

16

CME Group”, “CME Europe”, “CME Global Repository Services”, “CME European Trade Repository” and “CME Clearing Europe” are

brands of CME Group Inc. and its subsidiaries, members of which include Chicago Mercantile Exchange Inc., CME Europe Limited, CME

Clearing Europe Limited, CME Trade Repository Limited and CME Marketing Europe Limited.

Futures and swaps trading is not suitable for all investors, and involves the risk of loss. Futures and swaps are leveraged investments, and

because only a percentage of a contract’s value is required to trade, it is possible to lose more than the amount of money initially deposited

for a futures and a swap position. Therefore, traders should only use funds that they can afford to lose without affecting their lifestyles. And

only a portion of those funds should be devoted to any one trade because they cannot expect to profit on every trade.

CME Group is the trademark of CME Group, Inc. The Globe logo, Globex® and CME® are trademarks of Chicago Mercantile Exchange,

Inc. CBOT® is the trademark of the Board of Trade of the City of Chicago Inc. NYMEX, New York Mercantile Exchange, and ClearPort are

trademarks of New York Mercantile Exchange Inc. COMEX is a trademark of Commodity Exchange Inc. All other trademarks are the

property of their respective owners.

The information within this presentation has been compiled by CME Group for general purposes only. Although every attempt has been

made to ensure the accuracy of the information within this presentation, CME Group assumes no responsibility for any errors or omissions.

Additionally, all examples in this presentation are hypothetical situations, used for explanation purposes only, and should not be considered

investment advice or necessarily the results of actual market experience. All data is sourced by CME Group unless otherwise stated.

This communication does not constitute a Prospectus, nor is it a recommendation to buy, sell or retain any specific investment or to utilise

or refrain from utilising any particular service.

CME Europe Limited will be a Recognised Investment Exchange (RIE) subject to a pending application to the Financial Conduct Authority.

CME Clearing Europe Limited is a Recognised Clearing House (“RCH”) recognised by the Bank of England. CME Trade Repository Limited

(“CME European Trade Repository”) has applied to the European Securities and Markets Authority (“ESMA”) for registration under EMIR as

a registered trade repository. CME European Trade Repository will not conduct business as a trade repository until this registration has

been granted by ESMA.

Chicago Mercantile Exchange Inc. is a Recognised Overseas Clearing House (ROCH) recognised by the Bank of England. Chicago

Mercantile Exchange Inc., Board of Trade of the City of Chicago and the New York Mercantile Exchange are Recognised Overseas

Investment Exchanges (ROIE’s) recognised by the Financial Conduct Authority.

Issued by CME Marketing Europe Limited. CME Marketing Europe Limited (FRN: 220523) is authorised and regulated by the Financial

Conduct Authority in the United Kingdom.


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