REGIS-TR – the first European

Trade Repository for Derivatives

Powered by:
Agenda REGIS-TR
Feb 2012

1. Introduction to the regulatory environment

2. REGIS-TR - the services and benefits it proposes

2
 REGIS-TR
Reporting obligation Feb 2012

“All standardized OTC derivative contracts

should be traded on exchanges or electronic
trading platforms, where appropriate, and
cleared through central counterparties by
end 2012 at the latest. OTC derivative
contracts should be reported to trade
repositories.”

G20 declaration- Pittsburg, 25 September 2009

3
 REGIS-TR

Trade Repository Map worldwide – Status Fall 2012

One Global TR Solution – likely and desirable?

Local TR?
Local TR?

Local TR
Local TR
Local TR? Local TR?
Local TR
Local TR

Local TR
Local TR?
Local TR?

4
 REGIS-TR

Further considerations: Reporting obligation outside Europe

Host

Reporting counterparty Participants reporting obligation (Order of responsibility)

European SD vs.
American SD 1.- Swap Dealers
American SD
European SD vs.
European SD 2.- Major Swap Participants
American non SD
European non SD vs.
American SD 3.- Non SD nor MSP
American SD
European non MSP vs.
American MSP
American MSP
European non SD/MSP vs.
American non SD/MSP
American non SD/MSP
European MSP vs.
European MSP
American non SD/MSP

European entities trading in US markets that have not an obligation

to register as SD or MSP have no reporting obligation in the US
5
 REGIS-TR
Feb 2012
EMIR – Market Participant Categories

EMIR Counterparty Categories

Financial “Systemically Not

Counterparty important” Non- “systemically
Financial important” Non- Third Country
Banks, Counterparty Financial (non-EU) Entity
Insurances, entering into Counterparty
investment “non-hedging” entering into
firms, UCITS, activities in derivatives
pension funds, derivatives positions for
AIFs above the “hedging”
clearing activities only
threshold
FC NFC+ NFC- 3rd CE

All counterparty types, except for “3rd CEs” need to report all their derivatives trades

6
 REGIS-TR
Feb 2012
EMIR – Key Cornerstones of the EU Regulation

ESMA Final Key components of the reporting regulation:

Report
n Reporting: Financial as well as non-financial counterparties must report all,
cleared as well as uncleared, exchange- as well as OTC-traded contracts to a TR
– no threshold applies – no exceptions on derivatives products

n Reporting: 59 data fields in total. Basic trade information comprised in two tables
(counterparty data and common data).

n Reporting of exposures: Only financial and relevant non-financial (above the

clearing threshold) are obliged to report daily M2M valuations and collateral
values

n Timing: All derivatives positions must be reported to a trade repository (limit T+1)

n Live contracts are to be “backloaded”

n Reporting start date: phase-in per asset class (see next slide)

n Extensions: backloading (90 days for outstanding at time of reporting date and 3
years if not outstanding) and exposures (180 days) after the respective reporting
start dates

7
 REGIS-TR

EMIR – Timeline and implementation schedule

Reporting Reporting
Final Report Europ. obligation to obligation to
on Technical Commission TRs
approves “Final (Interest TRs
Standards (FX, Equities
EMIR adopted EMIR Report” of
EU proposal Publication enters into for EMIR Rates and and
by EU provided by ESMA Credit
of EMIR Parliament of EMIR force Commodities)
ESMA Default)
G20 in
Pittsburgh

>> >> Legislation >>>> Implementation >>>>>

Sept 21 July 15 Sept 29 March 27 July 16 Aug 30 Sep 19 Dec Sep 1 Jan
2009 2010 2010 2012 2012 2012 2012 2012 ! 2013 2013

Dodd Frank Reform &

Costumer Protection
Act signed CRD IV MiFIR REMIT

8
 REGIS-TR
Feb 2012
Who takes care of reporting?

Role of different parties in the definition of the reporting flow

Ø DFA: Clear role of platforms, markets, CCPs and sell side. Realtime
reporting obligations over primary details
Ø EMIR: Flexible approach. Industry players will define market practice for
reporting. T+1 reporting deadline

Ø In Europe, reporting can be carried out:

ü Directly and separately by the parties
ü Outsourced to the counterparty
ü Outsourced to the different platforms that intervene in the trading/post-
trading flow (exchanges, confirmation platforms, vendors, CCPs)
ü Depending on the post-trading flow, several 3rd party agents might
intervene

9
 REGIS-TR

REGIS-TR – Reporting Flows Feb 2012

Supervisory
Authorities
Trading
platforms

Post-trading Third Party

platforms delegation

Directly? Information
PDF CCPs
enhancement

Market Clients
Participants

Reporting Obligation
10
 REGIS-TR

Reporting requirements and reporting procedure under EMIR Feb 2012

Possible forms of reporting to REGIS-TR

IRS Trade
1) For the content of the reporting message:
§ “Delta”-Reporting – single report of an “action” or the
change of a content field, beginning after new trade
New 1

Each change that is subject to

opening ( 1 ) until termination ( 4 )

individually, not accumulated

Lifecycle (t to t+n)

reporting has to be reported

§ Recurring reporting of the whole trade (Snapshot – in this
case 4x) by flagging each “type of action“ ( 1 to 4 ) –

(Lifecycleview)
Modification 2
approach possible for the entire portfolio

2) For the frequency of reports (interchangeable):

Valuation Update
§
3
Ad-hoc (real-time)
§ Batch (frequency driven by the delivering system)
Cancel /Termination 4
§ Accumulated at end of day
§ In a single file
§ In several files

Fully ESMA-compliant test environment rolled out November 13th,

including complete technical/functional documentation and XML-scheme for
filling in the interface – available to all interested parties
11
Agenda REGIS-TR
Feb 2012

1. Introduction to the regulatory environment

2. REGIS-TR and the services and benefits it proposes

12
 REGIS-TR

What REGIS-TR can be for the industry

What is REGIS-TR and who is behind REGIS-TR What REGIS-TR brings to the industry
Interest rates
and fixed-
income

Credit default
Equities
swaps
Reporting of
all asset classes
by end of 2012

Commodities Foreign
exchange

Exchange
Trades Derivs

n A Trade Repository offering registration § Registration and reporting services for

and reporting services for Derivatives out Derivatives and holding the customer data
of Luxembourg exclusively in the EU

n Belonging to well known European § Providing a one-stop-shop service, based on a

Market Infrastructures within two reliable, cost-efficient TR solution for all types of
exchange infrastructures market participants
§ Delivering added-value services well beyond
regulatory compliance – matching, exposure
management, third-country domestic solutions…

13
 REGIS-TR
Feb 2012
REGIS-TR is based on a secure and scalable system environment

Technical architecture:
§ Developed on BME’s mainframe IBM platform with a central database server using
DB2
§ Efficiency, high security and scalability

Contingency measures:
§ Use of existing BME’s mainframe also used for CSD function:
n Maximum back-up quality standards
§ Availability of two redundant locations with data centres and offices, with synchronous
data replication:
n Integrity of back-up data
§ Internet access = BME Internet infrastructure with high capacity bandwidth and
complete redundancy: connection with two different ISPs through two independent
nodes. All components duplicated
§ Tested every 6 months

14
 REGIS-TR
Feb 2012
REGIS-TR offers flexible and industry-standard access

System Access and communication between Advantages:

participants and REGIS-TR:
§ Use of web-based application
Cost-efficient platform, accessible
from “anywhere”
§ Manual input/queries with secured Internet Efficient/cost-effective particularly for
access. Web access, exportable to CSV files small participants

§ Mass upload/download of XML files through Efficient for medium- to large

secured Internet access participants

§ Automatic transfer of XML files through a

Use of low-cost widely used industry
SWIFTNet FileAct file transfer connection
standards
between REGIS-TR and the participant

§ SOAP API connection and data transfer via

Alternative connection possibilities,
further flexibilizing the options for
SWIFT MT messaging under development
participants

§ Customer Service helpdesk during EU

working hours Online helpdesk support

Easy build-up of XML messaging that is widely used across financial and
non-financial counterparts.
15
 REGIS-TR
Access for market authorities

Access based on the ESMA technical standards

§ Access granted in accordance with regulatory demand, be it international or domestic
§ REGIS-TR will record information regarding the access to data given to the entities
listed under EMIR, including the scope of data accessed and a reference to the legal
provisions granting access to such data, as ESMA technical standards indicate
§ XML reporting provided by “push” to respective supervisory authority
§ Web based access with “supervisor” profile defined for each supervisory authority
providing:
§ Immediate full view of relevant entities’ positions exportable to CSV files
§ Pre-defined queries exportable to CSV files
§ Aggregated market dissemination on regular based (weekly statistics)

Archiving of information:
§ 10 years after termination of contracts
§ Can be increased if required

16
 REGIS-TR
Rolled-out and planned developments

Ongoing developments:
§ Roll-out of “Final Report-compliant” permanent test environment (Nov 2012)
§ Connectivity to different CCPs, starting with Eurex Clearing
§ Capturing of trade details of OTC- as well as Exchange-traded and cleared
derivatives directly from the clearing-house
§ Connectivity to SWIFT
§ Capturing of trade details of OTC derivatives transactions confirmed via SWIFT MT
messages directly out of the SWIFT system

Value-added Services for 2013

§ Reporting Hub:
§ REGIS-TR to perform central reporting hub services for future trade reporting necessities of the
industry in the framework of e.g. MiFiD, REMIT, CRD IV…
§ Exposure Management:
§ Existing international or domestic collateral pools for collateralisation of exposures in OTC
derivatives (Clearstream Cmax)

17

Why REGIS-TR?
Product offering:
§ Close contact with ESMA
§ First “ESMA-compliant” test environment
launched in Nov 2012. Free access
§ A complete technical documentation available.
Mapping works can be started already.
§ Reporting can be made easily via XML files
§ Automation of connectivity: SWIFTNet and
Web services SOAP API
§ Connectivity to Eurex Clearing and Meff
§ A number of software providers partnering:
B+S, C24, Cinovo, CAD IT…
§ Reporting Hub: central reporting hub services
e.g. MiFiD, REMIT, CRD IV…
§ Exposure Management: connection with
Clearstream Collateral management system
REGIS-TR
Commercial offer:
§ One-stop-shop in the EU
§ Clearstream sales force coverage & technical
help-desk to assist your IT team
§ Flexible participation profiles, allowing any
entity to participate directly or delegate to a
third party or play both roles if necessary
§ Legal agreements already available
§ Flexible fee schedule with caps and discounts
(free Backloading before reporting start date)
18
 REGIS-TR

REGIS-TR Pricing – flexible, transparent, cost-related and capped

Flexible pricing structure – Direct reporting to REGIS-TR:

PRICING SCHEDULES
Small Volume Package Medium Volume Package Large Volume Package
0 to 3K trades p.a. 3K to 50K trades p.a. More than 50K trades p.a.
Participation* € 700 € 1.800 € 3.500
Reporting** OTC: € 3,00 / ETD: € 0,30 OTC: € 0,25 / ETD: € 0,05 OTC: € 0,15 / ETD: € 0,01
Maintenance* € 0,1 € 0,02 € 0,01

FAMILY DISCOUNTS AND FEE CAPS***

Nº of entities in the same family 1 2 3 4 5 or more
Discount (on overall discount) 0% 10% 15% 20% 25%
Fee cap € 100.000 € 150.000 € 175.000 € 200.000 € 225.000

Reporting fees for “Third-Parties” to REGIS-TR:

PRICING SCHEDULE****
Free backloading
Participation* € 2.000
of trades before
Reporting** OTC: € 0,40 / ETD: € 0,10
reporting start date
Maintenance* 0,02 €
* Monthly net of tax fee; in case of custody applied per month until termination of trade
** Nonrecurring net of tax fee for reporting of a new trade; modification and reporting for counterparty free of charge
*** Applicable to entities with an affiliation of at least 50%
19
**** Payable by “Third-Party” to REGIS-TR, no direct affiliation or fee-related connection of the underlying customer intended
 REGIS-TR

Contact Details
REGIS-TR

42, Avenue J.F. Kennedy

L - 1855 Luxembourg
Tel: +352 243 36481
Email: onboarding@regis-tr.com

20