We have heard from our sources that Trayport and EFETNet are planning to offer connectivity between their platforms for REMIT, alongside their standalone offerings.

At present, Trayport offer their Complete service for Regulatory Reporting, and EFETNet offer eRR, each of which is a commercial reporting offering.

It is understood that the link up will allow those using either company’s facility to have it sent to the other. In particular the data and linkage that is already collected by Trayport can be sent directly to EFETNet, and sometimes vice versa.

On venue reporting
The REMIT Implementing Act does obligate venues to “offer a data reporting agreement” to report data directly to ACER. This includes orders, and also trades. There is therefore a perception by some Market Participants that “there is no work to do” to meet the first deadline for REMIT.  However there are three issues to consider:

• Venues do not have all of the data to report – Fields such a beneficiary ID, link ID and others are not known by the venue, so this must either be provided to them, or reported another way.
• Some venues (i.e. broker platforms) do not get involved in post trade events, such as modifications and early terminations. These must be reported separately, which will be complex if the venue is reporting the original execution.
• Fragmentation – Market Participants are obliged to “take reasonable steps to verify the completeness, accuracy and timeliness of the data which they submit through third parties”. Reporting via many venues will make it harder to carry this out.

It is understood that the link up attempts to address these issues. In particular it allows the creation of a central copy of data, including orders, and can enrich some of the missing data such as link IDs . This would permit market participants to have a choice of reporting mechanism, with connectivity to EFETNet, and a single reconciliation mechanism.

The “REMIT Fest”
It is interesting to see two of the companies that are involved in REMIT solutions getting together. We can expect many more announcements from RRMs and vendors with respect to REMIT over the next few weeks.

And we can certainly expect the upcoming “eWorld” exhibition to turn into a “REMIT Fest”. We will be making more announcements as we receive them, and hear more news.