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Griffin/EFETNet connection announced

Griffin Markets last week announced a connection to EFETNet’s RRM which will be provided free of charge for reports of data that arises out of trading on Griffin. The announcement can be found here. EFETNet offer their eRR regulatory reporting offering along side their confirmations matching platform and other solutions. When used in this way EFETNet acts as RRM.

Griffin have stated that they will still consider sending data to other RRMs if members request it, although they have a expressed a preference to only forward data if the RRMs takes it in “ACER XML”. This format is rapidly becoming an industry standard, since there are already several RRMs who have stated that they will use it as input, alongside ACER.  To many, the difference between a “standard” and a “format” is that many competing commercial (and other) entities use it. ACER XML would appear to meet this goal.

Using an OMP to report data (which they are obliged to “offer as a service” under REMIT) can give rise to some issues when considering a broker platform, especially when considering post trade events. Often, if a broker originated trade is modified or terminated early, it is done so bilaterally. If this happens the parties will need to report the event to ACER themselves via an RRM, unless the OMP also offers such a service. Looking at Griffin’s FAQ document it is clear from the second question on page 3 that participants will need to report such data themselves.

There are generally two other issues with OMP reporting: Firstly, the OMP may not have the data, especially the Beneficiary information. Secondly, periodic reconciliation is required across all OMPs, which will be difficult for market participants who trade on many venues but rely on the OMPs to report.

It is only now, 4 and a half months before reporting starts, that information on the OMP and RRM offerings   is beginning to emerge. That does not leave very long to make choices, and to resolve issues that could arise,  before the go live date.

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on the regulation of the commodity, energy and financial markets. He has more than 23 years of experience in the financial, energy and commodity markets, covering regulatory compliance, credit, risk and financial technology. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy and Commodity Regulation. Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations. Mr. Handler holds a degree in computer science from Imperial College, University of London.


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