Xtrakter, a leading provider of capital market data, trade matching and regulatory reporting, is now reporting derivative transaction data for clients to the UK's Financial Services Authority (FSA) using a newly implemented industry format – the Alternative Instrument Identifier (Aii).
In compliance with MiFID, the use of Aii for transaction reporting across Europe for derivatives admitted for trading on regulated markets will become compulsory for reporting to the FSA from 13 November 2011.
Using Xtrakter's TRAX interface, which is an approved one-stop regulatory reporting solution, clients have a cost-effective means to comply with all of their transaction reporting obligations. Currently, TRAX enables its users to report derivatives transactions using Aii to the Dutch and French regulators, namely De Autoriteit Financiële Markten (AFM) of the Netherlands and Autorité Des Marchés Financiers (AMF) of France.
Yannic Weber, Chief Executive Officer of Xtrakter, commented: "Our close collaboration with clients, trade associations and national regulators has enabled us to jointly deliver an industry-accepted format tailored to the specifics of derivatives contracts. Use of the Aii format will drastically lower operational risks, in as much as clients will be greatly helped with their reconciliation of valid derivatives trades, with invalid reports automatically rejected before onward reporting."
Weber continued: "Regulators across the globe have been demanding far greater levels of transparency around the composition of derivatives. The Aii format delivers this level of precision by providing the derivative type, trading venue, maturity, strike price, among other pertinent information within its scope. Moreover, firms availing of the new service will not run the risk of paying heavy fines as a result of non-compliant or erroneous reporting methods."
Notes to editors
Aii (Alternative Instrument Identifier) is a method of identifying derivative instruments which do not have ISIN codes. Since November 2007, transactions in derivatives admitted for trading on a regulated market have been reportable to the FSA; where the ISIN was not a standard way of identifying instruments, this requirement was deferred so that the FSA and the industry could prepare to use Aii.The Aii methodology was devised by FESE (Federation of European Securities Exchanges) and adopted as a standard by CESR (Committee of European Securities Regulators).
Xtrakter is a leading provider of capital markets data, operational risk management, trade matching and regulatory reporting services to the global securities market. It has an established track record in providing innovative, secure and reliable solutions to the financial services sector. Xtrakter was established in 1985 and has been part of the Euroclear group of companies since April 2009. It has 300 clients located globally, processes 3.5 million transactions daily and has registered offices in the United Kingdom. In 2010, Xtrakter processed 847 million transactions on behalf of its user community and currently provides regulators, aggregators and end clients with information to assist them in conducting their net asset valuations, markto- market calculations, fixed-income portfolio mapping, liquidity and volume modelling, as well as reference data population updates. Xtrakter has realtime and batched transaction acceptance mechanisms.
Euroclear is the world's largest provider of domestic and cross-border settlement and related services for bond, equity, derivatives and fund transactions. Market owned and market governed, the Euroclear group includes Euroclear Bank, based in Brussels, as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. The Euroclear group settled the equivalent of more than EUR 526 trillion in securities transactions in 2010, representing 150 million domestic and cross-border transactions, and held approximately EUR 22 trillion in assets for clients.