FpML version 5.7 | ISDA

ISDA Publishes Recommendation for FpML version 5.7

NEW YORK, July 9, 2014 - The International Swaps and Derivatives Association, Inc. (ISDA) today announced the publication of the Recommendation for Financial products Markup Language (FpML) version 5.7.

A variety of enhancements have been made to the FpML standard, including:

  • Version 5.7 covers the execution of package transactions. The addition impacts existing credit limit check messages and clearing messages.
  • Version 5.7 provides support for reporting requirements in different jurisdictions as FpML has become the global standard for trade reporting.
  • Version 5.7 electronically represents the Standardized Credit Support Annex (SCSA) document. On the product side, necessary changes have been made to support the ISDA 2014 Credit Derivatives Definitions.

“Representing legal documents in an electronic format, of which the SCSA is a first example, opens a further set of opportunities to leverage the marketplace standardization efforts for the purpose of efficiency and operational risk mitigation” says Pierre Lamy, Managing Director in the Technology Division at Goldman Sachs and Chair of the FpML Standards Committee.

The upcoming version 5.8 will focus further on product standardization in foreign exchange (FX) derivatives together with the coverage of commercial loan messages and repo representation. Regulatory reporting, clearing and electronic execution continue to be the focus areas for the FpML Standards Committee.

FpML is the industry standard for over-the-counter (OTC) derivatives and complex products. A Recommendation is the final step in the development process of a version. The latest version of the open-source standard is available on the FpML website: www.fpml.org. More information on the timing of future versions can be found in the FpML roadmap: http://www.fpml.org/roadmap/roadmap.pdf.

Hong Kong: HKMA to launch new phase of trade reporting

Hong Kong: HKMA to launch new phase of trade reporting
On March 31, the Hong Kong Monetary Authority (HKMA) announced that the new phase of the OTC derivatives Trade Repository (HKTR) will be launched in September. In this new phase, 15 products in FX, rates and equity will be introduced and institutions can report on a voluntary basis. HKMA has also updated the Reference Manual for Reporting Service and the Administration and Interface Development Guide to accommodate these new products, together with some refinements to the existing procedures and technical specifications for reporting. Another batch of products will be added by the end of 2015 to complete the product coverage of the HKTR.

Hong Kong: Legco passed Securities and Futures (Amendment) Bill
At the Legislative Council (Legco) meeting on March 26, the Council passed the Securities and Futures (Amendment) Bill 2013 with amendments moved by Secretary for Financial Services and the Treasury at the Committee Stage. The Bill includes the introduction of mandatory reporting, clearing and trading obligations in line with G20 commitments. It provides for regulating and overseeing key players in the over-the-counter derivatives market, introducing two new regulated activities to cover activities of dealers, advisers and clearing agents. Asset management and automated trading services provisions will also be expanded to cover over-the-counter derivative portfolios and transactions.

The Bill also provides for the regulation of systemically important participants who are not licensed or registered with either HKMA or SFC, but whose positions or transactions in the OTC derivative market are so significant that they may nevertheless raise concerns of potential systemic risks. The amendments introduced at the Committee Stage include, among others, adding a record keeping obligation and some clarifying language which states that even if a transaction contravenes the mandatory reporting, clearing, trading or record keeping obligation, this should not of itself affect the validity and enforceability of the transaction.

Majority Reported Trades to SDR cannot be matched | EMIR

European repositories are warning up to 60% of derivatives trade reports entering their systems cannot be matched with their corresponding halves, leaving vast numbers of orphaned reports and a patchy picture of what is happening in derivatives markets.

Risk.net explains why?

http://www.risk.net/risk-magazine/news/2335669/majority-of-emir-derivatives-reports-cannot-be-matched-say-repositories

SDR Reporting Dispute

The lawsuit "challenges three interrelated actions by the CFTC. The first was the commission's reversal of its published pro-competitive statements regarding its cleared swap data reporting rules," according to the complaint. "The second was its administrative action approving a new Rule 1001 of the Chicago Mercantile Exchange Inc. (CME), which imposes anti-competitive data reporting requirements that the commission had barred in its earlier statement. The third was its approval by inaction of a similar ICE Clear Credit rule." 

The plaintiffs allege the changes constitute a complete departure from the CFTC's final rule in violation of the Administrative Procedures Act (APA) and the Commodity Exchange Act.

http://www.courthousenews.com/2014/03/17/66212.htm

The Court Case
http://www.courthousenews.com/2014/03/17/DTCC_CFTC.pdf

http://www.courthousenews.com/2014/03/17/DTCC%20opinion.pdf

Regis-TR Webinar on Reporting

The Webinar on EMIR and trade reporting requirements, held in conjunction with Traiana and Arendt & Medernach on 9th January. The session attracted much interest with over 600 registrations and 160 questions raised.

According to the poll over 90% firms are ready to meeting the Feb 2014 reporting deadline.

Regis-TR Webinar
Regis-TR Poll