Risk Focus, a New York City-based provider of trading, risk and cloud-enabling solutions for capital markets, reports that the post-trade systems provider DTCC will employ the Risk Focus Validate Trade engine internally, aiming to enhance its pre-user acceptance testing for the Global Trade Repository service of the DTCC.
These steps are in advance of the October 2015 implementation of the ESMA Level 2 rules, Risk Focus and DTCC officials add.
According to the European Securities and Markets Authority (ESMA), which is charged with drafting “securities legislation [that] contributes to the development of a single rule book in Europe,” its level 1 rules “continue to set out the high level political objectives,” while the level 2 rules “can be considered as subordinate acts (known as delegated acts and implementing acts).
“Delegated acts are concerned more with the substantive content of the legislative requirement, for example setting out what authorization information firms must provide to competent authorities, whilst implementing acts are similar to executive measures giving effect to the substantive requirements,” ESMA officials say. “This might include, for example, standard forms, templates and procedures for communicating information or processes between competent authorities.”
Validate.Trade a “comprehensive validation and emulation engine that is made available to all industry participants looking to reduce costs or improve compliance. Nine of the largest global banks are in various stages of onboarding the Validate.Trade software,” according to Risk Focus officials. The latest release of Validate.Trade implements L2 FpML [financial products markup language] and CSV [comma separated value] validations in accordance with the DTCC’s draft Functional Change Document v0.9.
“Risk Focus is working closely with DTCC to ensure the final Level 2 rules are implemented in the Validate.Trade tool in accordance with the final GTR specification,” officials say.
Validate.Trade is also used by banks for such G20 regulatory reporting requirements as Dodd-Frank, EMIR, HKMA, JFSA, MAS, and ASIC.
“We are directly responding to client demands for early access to Level 2 rules,” Lloyd Altman, Risk Focus partner and global head of Validate.Trade, says in the vendor statement. “This release takes pressure off reporting parties, which can independently test their ESMA compliance well ahead of the October 2015 deadline.”
Need a Reprint?
Leave a Reply