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Jul 31, 2013 • DTCC Connection

BNP Paribas Securities Selects DTCC’s Trade Repository for Third Party Derivatives Reporting

BNP Paribas Securities Services (BNP Paribas) has entered into an agreement with the London-based DTCC Derivatives Repository Limited (DDRL) to help its clients meet obligations set by the European Market Infrastructure Regulation (EMIR) for the reporting of derivatives trades.

Andy Green BPNHélène Virello, head of collateral management services at BNP Paribas Securities Services said “A large number of industry players still associate EMIR exclusively with clearing. As a result, many may be unprepared to comply with reporting provisions entering into force in January 2014. Our agreement with DTCC provides an effective solution to fulfil the legal obligation on a timely and cost effective manner. As such we expect a strong demand for third party reporting services.”

EMIR requires the reporting of an extensive range of information which goes much beyond execution and confirmation details. Information on valuation, on the collateral held, on the rationale of the trade and on the identity of the final beneficiary is also required.

“The generation of the reporting may result in a very cumbersome and time consuming burden for our clients,” continued Virello. “Information must be taken from many sources, aggregated and reconciled using common identifiers. With our Collateral Access products, we accompany our clients through the entire transaction process - from trade capture to reporting, including electronic affirmation and confirmation and liquidity solutions and we are ideally placed to carry on reporting on behalf of trading parties.”

“We are very pleased to establish this connectivity with BNP Paribas, which will helpthe bank’s wholesale clients meet their regulatory obligations under EMIR for all five derivatives asset classes,” said Andrew Green, global head of derivative account management, DTCC Deriv/SERV. “Furthermore, by reporting their trades to a DTCC repository once, clients of BNP Paribas can meet their reporting obligations in multiple jurisdictions, where such obligation exists. Having this discussion with their service providers or dealers, or with a trade repository, is paramount to getting them ready to meet their regulatory obligations.”

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