Presentation on theme: "EMIR strategy OTC Lite solution Introduction and Overview."— Presentation transcript:
1 EMIR strategyOTC Lite solutionIntroduction and Overview
2 DTCC GTR EMIR Reporting Section A –Solution IntroductionOverview of solutionWhat the solution offersSection B – Onboarding and AccessOnboardingGlobal IDWebsiteSection C – Message TemplateUnderstanding the templateSection D – Participant ReportsACK/NACK ReportsEMIR Position Report and Activity ReportsWarning ReportESMA Match Status ReportESMA UTI Conflict or Pair LEI Break ReportSection E – Support for the OTCLite solutionOverview of message templateOther useful information
3 Section A: Solution Introduction Overview of OTC Lite solution Simple input route for ESMA OTC reportingSingular data processing centre within EuropeNetherlands data centre will be primary entry of data for ESMA reported transactionsBack-up data centre in Singapore for use in recovery situationsSimplified input optionsCSV spreadsheet upload over internet or csv spreadsheet via sFTP onlySmaller template just for ESMA reportingSimple workflow and submission typesConcise suite of participant reportsAsset Class CoverageCommodities, Credit, Equities, Rates and FXAll on a single template (and can be mixed on a single submission)Reporting MethodsSupports Independent reporting (where you provide the trade details and details about you, but leaves your counterparty to report their details separately)Supports Delegated reporting (where you report on behalf of you and your counterparty, providing all required details on a single submission)
4 Section A: Solution Introduction What the solution offers CategoryFunctionalityDifference from core solutionPurposeProvides input for ESMA Annex table fields and GTR Control fieldsCannot support multi-jurisdictional messagesJurisdictions supported - ESMA onlyPortfolio reconciliation is not possible as the template is a limited set of fieldsConnectivityConnectivity - Direct submission to EU data centerCannot submit to US Data CenterSubmissionFile format - CSV file format onlyNo FpML on inbound or outboundSubmission methods - Web upload and sFTPNo MQ, NDM or web servicesOnly Position message type supported (similar to Snapshot Trade in Core service)No RT, PET, Confirm or combination message types supportedAll submission of lifecycle events using snapshot methodPartial delegation or short-form snapshot not offered (for day 1)Full delegation or independent reporting capability offeredNo ability to allow a short message for Counterparty Data only (full message is required) Valuation & Collateral message types (future phase)No Position buildingReportingACK and Nack Report (2 separate file output reports)No Warning Message (no WACK)Warning ReportNo Counterparty Acknowledgements (only ACK / NACK to the submitter of the message)ESMA Activity Report (new report)No link between OTC Lite and OTC Core Submissions (with exception of new reports)ESMA Position Report (new report)Full suite of Core reports not availableESMA Match Status Report (new report)ESMA UTI Conflict or Pair LEI Break Report (new report)Aggregate Public ReportingAggregate output of Reports to ESMAInter and Intra TR ReconciliationOnboardingOnboarding via internetFull onboarding through GTR Onboarding (new O-Code)
5 Section B: Onboarding And Access In order to use the DTCC OTCLite application you will need to be “on-boarded” to the DTCC GTRIf you already use another DTCC or GTR service then that on-boarded processes is streamlined, but we still need additional information from you in order to set you up to access OTCLiteThe on-boarding process can provide you access to both production and UAT environmentsThe GTR On-boarding team can be reached:ByBy phone: +44 (0) (option 2 and 2)On-boarding documents and guides can be found on the OTCLite websiteWhen on-boarded you will be provided with an Account NumberThis is the account for the legal entity being on-boarded, and a number of different DTCC products can then be added to that accountOnce you have an account our team at DTCC will provide you with an OCODE for each of the products you want included on your accountOTCLite is an example of a product that can be added to your account and will have a separate OCODE (usually a 4 digit number starting with the number 8)Other products (such as our core application for FX for an example) would have a different OCODEDuring the onboarding process one or more people at your organisation will be set up as a Super Access Coordinator (SAC)Those SACs control how others within your organisation access the various products on your accountA step-by-step guide for SACs can be found on the DerivSERV websiteOne of the tasks that a SAC can do is provide each user within their firm with a GLOBALIDThat global id is essential for the user to be able to access the European Portal – the website which will be used to make csv submissions and access the OTCLite reportsThe EU Portal can be found at https://gtr.eu.dtcc.comIn order to use OTCLite you will need (1) an account, (2) an OTCLite OCODE and (3) a GLOBALID
6 Section C: Message Template Understanding the Template The OTCLite template is a csv (comma separates values) spreadsheetUp to date version published on the OTCLite website (http://www.dtcc.com/en/data-and-repository-services/global-trade-repository/otc-lite.aspx)Message template includes 156 fields in total-25 fields are related to GTR control fields (required for GTR to be able to understand and process the message)131 fields relate specifically to ESMA required fieldsThe 131 ESMA related fields include fields that are only needed for delegated reportingWill support 3 message typesPosition – available on initial release- report the position for a contract each day representing the latest position data. Valuation – to be included in later releaseCollateral – to be included in later releaseField TypesRequired– A valid value must be provided in this field in order for the submission to be successfully processed and receive an ACK. Required fields missing valid values will be rejected by the applicationOptional – This field may be left blank and still have your submission processed by the application and receive an ACK, but may not be fully compliant with EMSA expectationsConditional – A value is expected in these fields dependent upon values provided in other fieldsExample: “Currency of option strike price” is only required if a value is reported in the optional field “Option Strike Price”N/A – no values are expected to be provided in these fields, and if any value is provided it will be ignored by the applicationGenerally used for “placeholder” field that may be utilised in later releasesReporting parties have the obligation to ensure all required ESMA data has been reported.Some optional fields are required to be reported to ESMA but based on the scenario the reporting party may not have all the information at the time (example: Where reporting on behalf of a counterparty the reporting party may not have information to populate “Directly linked to commercial activity or treasury financing Party 1” where the counterparty is a non-financial entity)
7 Section C: Message Template Understanding the Template: Lifecycle Events Position MessageThe lifecycle events on each position would also be reported using this message type and for each updated position message firms must report the resulting position from the lifecycle eventExample: New trade for USD 150m, followed by a partial termination of USD 50m the following dayStep 1Step 2Step 2 reports the position of the transaction after the post trade event: what is left of the trade
8 Section C: Message Template Understanding the Template: Field Types Extract only from the template to demonstrate various field types and informationAn additional webinar will cover the template in detail, the intention on this presentation is to introduce you to how to read thetemplate only
9 Section D: Participant Reports ACK/NACK Reports ACK and NACK ReportsEach time you submit a file of positions to the OTCLite service you will be provided with a Batch NumberThat batch number can be seen on the OTCLite dashboard pageShortly after submission an ACK and a separate NACK report is available just for that batch, and can be accessed via the Download button shown aboveNote that there will be two files, one for ACKs (trades processed successfully) and another for NACKs (trades rejected by the application). If one report is empty please ensure you check the other report to see the trade detailsIf the file has not yet processed then the report will show that processing is still under wayThe NACK report will contain error codes and descriptions which aim to provide guidance on the reason for the rejections
10 Section D: Participant Reports End of Day Reports For OTCLite there are a number of end of day reports that are produced.The process that generates these reports starts at midnight UCT each business day (report availability time will differ from day to day depending on volumes)ESMA Position ReportThis report will reflect all open (i.e. “live”) positions for the participant, regardless of whether submitted by the participant or by another participant that names them as the counterparty on their submission.All live position will be included regardless of when they were submitted (so a position submitted a year ago will appear on the position report every day until maturity or until it is terminated by a subsequent submission)It will also include positions created by OTCLite submissions and submissions into the GTR Core applicationTrades that mature automatically drop from this report after maturityIf you and your counterparty have reported the trade then there will be a line for eachThis allows each participant to perform their own reconciliation and resubmit where there may be errors.ESMA Activity ReportThis report will reflect all submission activity since the last activity report was generated.Submissions made by you, on your behalf by a third party provider and submissions made by other participants naming you as a counterparty will be included.If a single trade has multiple submissions made during that day then each submission will appear on the activity reportESMA Warning ReportAs noted earlier, some fields are marked as optional on the OTCLite template as they will not always apply to a given production, or may not be known at the tie of submission, but should still be submitted for a fully ESMA compliant messageThis report aims to highlight live positions that may not include all information needed to be EMSA compliantThese trades are still reported to ESMA, but DTCC recommends for participants to review this report and make additional submissions to include the missing data for a fully compliant position to be reported.More detailed descriptions of these reports, including field descriptions can be found in the OTCLite user guide on the website
11 Section D: Participant Reports End of Day Reports: New reports ESMA Match Status ReportThe new Matching Status report will provide participants with a breakdown of differences between the reported trades’ common data to facilitate them in investigating and resolving breaks. The Matching Status report will detail the list of unmatched fields but only the field name and not the field content on either side of the position.ESMA UTI Conflict or Pair LEI Break ReportThis is a new report provided to a counterparty of the Transaction based on results of the Inter-TR reconciliation. An additional report should also contain details of any UTI Conflicts or Pair Break LEI’s recorded to inform participants and submitters of specific problems.
12 Section E: Client Support Dedicated OTCLite webpage(http://www.dtcc.com/en/data-and-repository-services/global-trade-repository/otc-lite.aspx)Includes recorded presentations, user guide, connectivity guide, up to date template and a schedule of online demonstrationsDedicated UAT Support teamSupport available in multiple European languagessupport for testing:for production:Hotline support:Europe/UK/Asia: +44 (0) (Options 1,3)North America:Sending QueriesUseful to always include the following informationYour account numberYour Batch IDYour csv submission fileO-code
13 DisclaimerThe content, information and any materials (“data”) provided by DTCC Deriv/SERV LLC (Deriv/SERV) and/or its affiliated companies or subsidiaries in this presentation is on an “as is” basis. Deriv/SERV expressly disclaims all warranties, expressed or implied, as to the accuracy of any data provided, including, without limitation, liability for quality, performance and fitness for a particular purpose arising out of the use of the data.Deriv/SERV shall not have any liability, duty or obligation for or relating to the data contained herein, any errors, inaccuracies, omissions or delays in the data, or for any actions taken in reliance thereon. In no event shall Deriv/SERV be liable for damages, including, without limitation, damages resulting from lost data or information or lost profits or revenue, the costs of recovering such data, the costs of substitute data, claims by third parties of for other similar costs, or any special, incidental, or consequential damages, arising out of the use of the data.Any unauthorized use, including but not limited to copying, distributing, transmitting or otherwise of any data appearing herein may violate the intellectual property rights of Deriv/SERV under any intellectual property laws such as copyright laws, trademark laws and communications, regulations and statutes.