Fully Automate Trade Repository Reporting for Derivative Trades

Transcription

1 SAP Brief SAP Extensions SAP Trade Repository Reporting by Virtusa Fully Automate Trade Repository Reporting for Derivative Trades

2 SAP Brief Meet regulatory demands for derivative transactions Since the 2008 financial crisis, global companies have needed to report all lifecycle events for their derivative transactions to trade repositories. But this is complex and time-consuming for corporate treasuries especially those with limited resources because legislative schemas and repository application programming interfaces (APIs) vary by country and are constantly changing. Meet regulatory demands for derivative transactions Until now, financial institutions have relied on homegrown solutions which are difficult and costly to maintain or niche solutions that support only simple handoffs to trade repositories (TRs). What s needed is a systematic way to record, prepare, and map transaction data against the latest legislative schemas and then automate reporting to TRs. At the same time, the dataschema mapping process must ensure that data reported is validated. The SAP Trade Repository Reporting application by Virtusa, when deployed in conjunction with the SAP Treasury and Risk Management application, can help. This full-service, bidirectional, cloudbased reporting solution automates end-to-end reporting for all derivative trades in REGIS-TR and monitors the entire reconciliation process for all trades across all TRs in the EU. And because the solution is continuously updated to reflect the latest legislative schemas and requirements, it facilitates accurate compliance globally. 2 / 8

3 SAP Brief Unlike other solutions on the market, SAP Trade Repository Reporting captures data from both the buy and sell sides of all derivative transactions occurring in SAP Treasury and Risk Management. Trade data is then transformed into data that is compliant with the European Market Infrastructure Regulation (EMIR) and routed to REGIS-TR, where it is propagated to other TRs used for EMIR compliance. (Support for other TRs is planned.) The software automatically identifies data that must be reported, extracts it, and processes it in a transformation engine that renders it in an EMIR-compliant form to REGIS-TR, where it is propagated to other TRs. A built-in regulatory engine detects relevant changes in the transaction lifecycle that must be reported to meet local regulatory requirements. At all times, the software uses straight-through, automated processing for all trade reporting, keeping your workload to a minimum. All trade types are supported both internal (which must be reported in the EU) and external (national and international). 3 / 8

4 SAP Brief Rather than sending transaction data directly to TRs and the European Securities and Market Authority, SAP Trade Repository Reporting holds the data for a full business day, giving you time to monitor, manage, and even analyze it. This pause in reporting occurs without jeopardizing reporting time frames mandated by the EMIR. A fully automated reporting process from source system to TR and back is triggered in a timely manner to help ensure compliance. Even after data is reported to authorities, SAP Trade Repository Reporting continues to add value, performing ongoing data reconciliations and retrieving all reports and feedback from REGIS-TR. This data is automatically consolidated and visualized within the solution, allowing you to instantly see the positive acknowledgment and negative acknowledgment information for each reported trade (including messaging information) and the reconciliation status. In addition to recording every change and transaction, it enforces a documentation process for every event. So when local authorities ask why something occurred three months or three years ago, you can instantly look it up, and see who made the change, when, and the reason it was made. Using data mining and advanced analytics, you can also drill down into reported data quickly to answer questions about trade details. 4 / 8

5 SAP Brief SAP Trade Repository Reporting fully automates the reporting process, from source system to REGIS-TR and back. Data reported into REGIS-TR is automatically shared with other TRs in the EMIR. At the same time, the software performs automatic and continuous reconciliations both intratrade repository reconciliations on trades where both sides of the transaction are reported to REGIS-TR and intertrade repository reconciliations with other TRs in the EMIR. Using the reporting dashboard, you have full visibility of and control over these processes. At any time, you can: Get the current status and history of your trades Drill down into and analyze your data Reconcile inter-tr and intra-tr reports with your data Perform audits and get answers to questions And, as regulations change and TR interfaces change, the software is continuously updated to reflect them, facilitating accurate compliance at all times. Now you can use one platform to automate the entire trade reconciliation process for all trades across all TRs in the EMIR. 5 / 8

6 SAP Brief Both the legislative requirements and the interfaces to the TRs are constantly changing and they will continue to do so. So, to achieve compliance and maintain it over time, you need a solution that makes it easy to identify changes globally and keep functionality current as requirements change. Handling this effort internally will place significant cost and pressure on your business and IT resources and not add any business value to your business. With SAP Trade Repository Reporting, we keep your software current for you, even as legislation changes within the countries participating in the EMIR. A dedicated team monitors regulatory changes and API changes made by the TRs and then proactively makes necessary changes to the solution. This is vital for helping ensure your business remains compliant at all times. At the same time, by outsourcing the handling of this time-consuming research and coding effort, you re free to focus on your core business. Experts monitor regulatory and TR interface changes and make timely adjustments to the software so you can focus on your business. 6 / 8

7 SAP Brief Realize the benefits SAP Trade Repository Reporting automates the time-consuming and error-prone process of reporting on derivative transactions in all asset classes. Now you can be confident that you are complying with all current legislation, reporting information that s 100% accurate for every transaction over time, and maintaining full transparency and control. You benefit from: Freedom from time- and resource-intensive compliance work, freeing you to focus on your core business Accurate, timely compliance through automated processes and ongoing software updates that reflect the latest legislative and TR changes Reduced risk by monitoring and correcting data before it goes to TRs and authorities Full visibility of and control over the reporting process Easier auditing by accessing a complete historical record of every transaction and change over time, including who made it and why Reduced IT effort by moving to a continuously updated and maintained cloud solution Eliminate the time-consuming work of derivatives trade reporting and focus on more strategic work for your business. Realize the benefits 7 / 8

8 SAP Brief Summary The SAP Trade Repository Reporting application by Virtusa is a cloud-based solution that addresses European Market Infrastructure Regulation (EMIR) requirements when contracting with European entities. It facilitates compliance with current requirements for reporting derivative contracts in Europe by transforming data into EMIR-compliant data for REGIS-TR and submitting the data as required. At the same time, users have a dedicated platform for full visibility and control of the reporting process. Comply with evolving EMIR reporting requirements for derivative trades Transform data into EMIR-compliant information Automate compliance to free up treasury and IT staff for strategic work Data collection, transformation, mapping, and routing of data to trade repositories (TRs) using straight-through processing Monitoring of the entire process to help ensure accuracy and compliance Automated reporting to REGIS-TR Auditing, data mining, and analysis for greater insight and control Faster, easier compliance with the EMIR, so you can stay focused on core business Increased efficiency with automated data collection and transformation Reduced risk by monitoring data before it s reported Full control over the reporting process Learn more To find out more, call your SAP representative today or visit us online. 8 / 8

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