Transcript Section D – Participant Reports

EMIR STRATEGY
OTC LITE SOLUTION
INTRODUCTION AND OVERVIEW
© DTCC
DTCC GTR EMIR Reporting
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Section A –Solution Introduction
1.
2.
Overview of solution
What the solution offers
Section B – Onboarding and Access
1.
2.
3.
Onboarding
Global ID
Website
Section C – Message Template
1.
Understanding the template
Section D – Participant Reports
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2.
3.
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ACK/NACK Reports
EMIR Position Report and Activity Reports
Warning Report
ESMA Match Status Report
ESMA UTI Conflict or Pair LEI Break Report
Section E – Support for the OTCLite solution
1.
2.
Overview of message template
Other useful information
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Section A: Solution Introduction
Overview of OTC Lite solution
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Simple input route for ESMA OTC reporting
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Singular data processing centre within Europe
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Simplified input options
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CSV spreadsheet upload over internet or csv spreadsheet via sFTP only
Smaller template just for ESMA reporting
Simple workflow and submission types
Concise suite of participant reports
Asset Class Coverage
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Netherlands data centre will be primary entry of data for ESMA reported transactions
Back-up data centre in Singapore for use in recovery situations
Commodities, Credit, Equities, Rates and FX
All on a single template (and can be mixed on a single submission)
Reporting Methods
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Supports Independent reporting (where you provide the trade details and details
about you, but leaves your counterparty to report their details separately)
Supports Delegated reporting (where you report on behalf of you and your
counterparty, providing all required details on a single submission)
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Section A: Solution Introduction
What the solution offers
Category
Purpose
Functionality
Difference from core solution
Provides input for ESMA Annex table fields and GTR Control
fields
Cannot support multi-jurisdictional messages
Jurisdictions supported - ESMA only
Connectivity Connectivity - Direct submission to EU data center
File format - CSV file format only
Submission methods - Web upload and sFTP
Only Position message type supported (similar to Snapshot
Trade in Core service)
Submission
All submission of lifecycle events using snapshot method
Full delegation or independent reporting capability offered
Valuation & Collateral message types (future phase)
ACK and Nack Report (2 separate file output reports)
Warning Report
ESMA Activity Report (new report)
ESMA Position Report (new report)
Reporting
Portfolio reconciliation is not possible as the template is a limited set
of fields
Cannot submit to US Data Center
No FpML on inbound or outbound
No MQ, NDM or web services
No RT, PET, Confirm or combination message types supported
Partial delegation or short-form snapshot not offered (for day 1)
No ability to allow a short message for Counterparty Data only (full
message is required)
No Position building
No Warning Message (no WACK)
No Counterparty Acknowledgements (only ACK / NACK to the
submitter of the message)
No link between OTC Lite and OTC Core Submissions (with exception
of new reports)
Full suite of Core reports not available
ESMA Match Status Report (new report)
ESMA UTI Conflict or Pair LEI Break Report (new report)
Aggregate Public Reporting
Aggregate output of Reports to ESMA
Inter and Intra TR Reconciliation
Onboarding via internet
Onboarding
Full onboarding through GTR Onboarding (new O-Code)
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Section B: Onboarding And Access
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In order to use the DTCC OTCLite application you will need to be “on-boarded” to the DTCC GTR
If you already use another DTCC or GTR service then that on-boarded processes is streamlined, but we still need additional
information from you in order to set you up to access OTCLite
The on-boarding process can provide you access to both production and UAT environments
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The GTR On-boarding team can be reached:
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When on-boarded you will be provided with an Account Number
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OTCLite is an example of a product that can be added to your account and will have a separate OCODE (usually a 4 digit number starting with the
number 8)
Other products (such as our core application for FX for an example) would have a different OCODE
During the onboarding process one or more people at your organisation will be set up as a Super Access Coordinator (SAC)
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This is the account for the legal entity being on-boarded, and a number of different DTCC products can then be added to that account
Once you have an account our team at DTCC will provide you with an OCODE for each of the products you want included on your
account
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By e-mail : [email protected]
By phone: +44 (0) 207 136 6328 (option 2 and 2)
On-boarding documents and guides can be found on the OTCLite website
Those SACs control how others within your organisation access the various products on your account
A step-by-step guide for SACs can be found on the DerivSERV website
One of the tasks that a SAC can do is provide each user within their firm with a GLOBALID
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That global id is essential for the user to be able to access the European Portal – the website which will be used to make csv submissions and access
the OTCLite reports
The EU Portal can be found at https://gtr.eu.dtcc.com
In order to use OTCLite you will need (1) an account, (2) an OTCLite OCODE and (3) a GLOBALID
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Section C: Message Template
Understanding the Template
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The OTCLite template is a csv (comma separates values) spreadsheet
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Up to date version published on the OTCLite website (http://www.dtcc.com/en/data-and-repository-services/global-traderepository/otc-lite.aspx)
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Message template includes 156 fields in total
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25 fields are related to GTR control fields (required for GTR to be able to understand and process the message)
131 fields relate specifically to ESMA required fields
The 131 ESMA related fields include fields that are only needed for delegated reporting
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Will support 3 message types
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Position – available on initial release- report the position for a contract each day representing the latest position data.
Valuation – to be included in later release
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Collateral – to be included in later release
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Field Types
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Required– A valid value must be provided in this field in order for the submission to be successfully processed and receive
an ACK. Required fields missing valid values will be rejected by the application
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Optional – This field may be left blank and still have your submission processed by the application and receive an ACK, but
may not be fully compliant with EMSA expectations
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Conditional – A value is expected in these fields dependent upon values provided in other fields
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N/A – no values are expected to be provided in these fields, and if any value is provided it will be ignored by the application
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Example: “Currency of option strike price” is only required if a value is reported in the optional field “Option Strike Price”
Generally used for “placeholder” field that may be utilised in later releases
Reporting parties have the obligation to ensure all required ESMA data has been reported.
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Some optional fields are required to be reported to ESMA but based on the scenario the reporting party may not
have all the information at the time (example: Where reporting on behalf of a counterparty the reporting party may
not have information to populate “Directly linked to commercial activity or treasury financing Party 1” where the
counterparty is a non-financial entity)
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Section C: Message Template
Understanding the Template: Lifecycle Events
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Position Message
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The lifecycle events on each position would also be reported using this message type and for each updated position
message firms must report the resulting position from the lifecycle event
Example: New trade for USD 150m, followed by a partial termination of USD 50m the following day
Step 1
Step 2
Step 2 reports the position of the transaction after the post trade event: what is left of the trade
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Section C: Message Template
Understanding the Template: Field Types
Extract only from the template to demonstrate various field types and information
An additional webinar will cover the template in detail, the intention on this presentation is to introduce you to how to read the
template only
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Section D: Participant Reports
ACK/NACK Reports
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ACK and NACK Reports
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Each time you submit a file of positions to the OTCLite service you will be provided with a Batch Number
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That batch number can be seen on the OTCLite dashboard page
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Shortly after submission an ACK and a separate NACK report is available just for that batch, and can be accessed via the
Download button shown above
Note that there will be two files, one for ACKs (trades processed successfully) and another for NACKs (trades rejected by the
application). If one report is empty please ensure you check the other report to see the trade details
If the file has not yet processed then the report will show that processing is still under way
The NACK report will contain error codes and descriptions which aim to provide guidance on the reason for the rejections
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Section D: Participant Reports
End of Day Reports
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For OTCLite there are a number of end of day reports that are produced.
The process that generates these reports starts at midnight UCT each business day (report availability time will differ from day to
day depending on volumes)
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ESMA Position Report
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This report will reflect all open (i.e. “live”) positions for the participant, regardless of whether submitted by the participant or
by another participant that names them as the counterparty on their submission.
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All live position will be included regardless of when they were submitted (so a position submitted a year ago will appear on
the position report every day until maturity or until it is terminated by a subsequent submission)
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It will also include positions created by OTCLite submissions and submissions into the GTR Core application
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Trades that mature automatically drop from this report after maturity
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If you and your counterparty have reported the trade then there will be a line for each
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This allows each participant to perform their own reconciliation and resubmit where there may be errors.
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ESMA Activity Report
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This report will reflect all submission activity since the last activity report was generated.
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Submissions made by you, on your behalf by a third party provider and submissions made by other participants naming you
as a counterparty will be included.
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If a single trade has multiple submissions made during that day then each submission will appear on the activity report
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ESMA Warning Report
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As noted earlier, some fields are marked as optional on the OTCLite template as they will not always apply to a given
production, or may not be known at the tie of submission, but should still be submitted for a fully ESMA compliant message
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This report aims to highlight live positions that may not include all information needed to be EMSA compliant
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These trades are still reported to ESMA, but DTCC recommends for participants to review this report and make additional
submissions to include the missing data for a fully compliant position to be reported.
More detailed descriptions of these reports, including field descriptions can be found in the OTCLite user guide on the website
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Section D: Participant Reports
End of Day Reports: New reports
ESMA Match Status Report
• The new Matching Status report will provide participants with a
breakdown of differences between the reported trades’ common
data to facilitate them in investigating and resolving breaks.
• The Matching Status report will detail the list of unmatched fields but
only the field name and not the field content on either side of the
position.
ESMA UTI Conflict or Pair LEI Break Report
• This is a new report provided to a counterparty of the Transaction
based on results of the Inter-TR reconciliation. An additional report
should also contain details of any UTI Conflicts or Pair Break LEI’s
recorded to inform participants and submitters of specific problems.
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Section E: Client Support
• Dedicated OTCLite webpage
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(http://www.dtcc.com/en/data-and-repository-services/global-trade-repository/otc-lite.aspx)
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Includes recorded presentations, user guide, connectivity guide, up to date
template and a schedule of online demonstrations
• Dedicated UAT Support team
– Support available in multiple European languages
– Email support for testing: [email protected]
for production: [email protected]
– Hotline support:
• Europe/UK/Asia: +44 (0)207-136-6328 (Options 1,3)
• North America: 1-888-382-2721
Sending Queries
Useful to always include the following information
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Your account number
Your Batch ID
Your csv submission file
O-code
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