Managing Compliance Risk with Automated Reporting

The Business Challenge

ESMA (European Securities and Markets Authority) regulations require counterparties to report derivative contracts they have concluded, or which they have modified or terminated, to a registered trade repository under EMIR reporting requirements. The reporting obligation shall apply to derivative contracts which were entered before 12 February 2014 and remain outstanding on that date, or were entered on or after 12 February 2014.

Argentex, as an investment firm that pays high importance to regulations and customer satisfaction, needs to establish a mechanism to report derivatives on behalf of both their company and client counterparties.

EMIR reporting includes not only data on the transaction itself, but also information on clearing, on-going valuation and collateralisation. It is imperative to report accurately and timely as not doing so has financial penalties and may affect company reputation.

Our Solution

Synetec developed a mechanism within the current client’s CRM system to be able to integrate with a 3rd party registered repository. This functionality also allows interaction between the client’s CRM system and the repository. Therefore providing the client means from within the CRM system to verify and action on reporting data that are rejected by the EMIR registered repository.

Results and Benefits

EMIR reporting obligations where met and the investment firm was able to keep focus on their important business goals assured that the company is compliant.