Trax to provide regulatory reporting for exchange-traded derivatives

Trax to provide regulatory reporting for exchange-traded derivatives

Xtrakter, a utility acquired by Euroclear last month from the International Capital Market Association, has announced that its Trax trade matching and regulatory reporting system will facilitate the reporting of exchange-traded derivatives and other complex derivatives in accordance with the requirements of the European Union's Markets in Financial Instruments Directive (MiFID) starting in the first quarter of next year.

The Committee of European Securities Regulators requires firms to regulatory report derivatives to competent authorities throughout Europe in accordance with MiFID. According to Xtrakter, by utilising Alternative Investment Identifier codes the Trax community can report exchange-traded and other complex derivatives to the UK's Financial Services Authority.

'Many firms that are not members of the Trax community are unaware of their legal obligation to report exchange-traded derivatives under MiFID,' says Xtrakter chief executive Kevin Milne. 'We have been working closely with our clients to ensure they are compliant and to provide them with a seamless solution to this matter.'

Trax is a post-trade, pre-settlement trade matching and regulatory confirmation system in use by the over the counter derivatives market since 1989. The system has more than 200 subscribers worldwide and processes an average of 1.5 million transactions daily.

Trax is an approved reporting mechanism under MiFID and provides regulatory reporting to the FSA in the UK, France's AMF, AFM in the Netherlands and the Belgian National Bank, and is available to any financial institution active in the international capital market.

A provider of operational risk management, trade matching, regulatory reporting and data services to the global capital market, Xtrakter was established in 1985 as the market services division of the ICMA trade association and was one of the first providers of secure trade matching and regulatory reporting systems for the OTC market, as well as pioneering the development of the first repurchase automated trade matching system.

Last month international clearing house Euroclear signed an agreement with the ICMA to acquire Xtrakter for an undisclosed cash amount. Subject to regulatory approval, the firm will become a wholly-owned subsidiary of Euroclear and a sister company to the group's international and national central securities depositories as well as EMXCo, a provider of mutual fund order routing messages.

'Under our new ownership, we will maintain our strategy of delivering ongoing improved client services across all our business lines,' Milne said at the time. 'Being part of Euroclear will enable us to drive our matching, reporting and information services products into new areas, helping our customers to reduce further their operational cost of trading.'

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