REMIT Reporting Services and Solutions - July 2015 updated March 2016
Some ETRM suppliers will provide dedicated “adapters” directly from their system to one or more RRMs or TR/RRMs
(software providers often prefer to work with TR/RRMs in order to reduce the number of adapters and
relationships). The adapter will often sit alongside an offering used for EMIR, Dodd Frank or another regulation. It
will examine the trades that are entered or modified within the system, and generate the appropriate data at the
correct point in the trade lifecycle. It will do so by “looking” at the data and deriving the appropriate data file in the
form required by the RRM (which will usually by ACER XML). It will then connect to the RRM and manage the
interactions with it. Some adapters will also pull in ACER receipts and connect them back to the trades, providing the
appropriate reports back to the user.
Note that no ETRM solution on the market at present is known to handle orders, and this aspect of reporting will not
be handled by such an adapter.
The adapter pulls data only from the ETRM concerned. If a market participant has more than one ETRM, or trades
which are not contained in any system, they will have the following options:
1 – Install adapters for the other systems as well – this will lead to many solutions being installed. If trades are not in
a system at all, the equivalent option for those trades is to upload a file with a trade representation, as mentioned
above.
2 – Import all trades into the ETRM – this will not usually be practical.
As a result, use of an ETRM adapter is optimal for those with one such system, and few trades outside of it.
In addition to considering trades that are not in the system, those who opt for the ETRM adapter route will need to
think about:
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Orders – how are these sent to ACER and reconciled?
OMP data – will the adapter only be used for off venue, trades? How does the adapter handle post trade events
in such a situation?
Enrichment and missing data – the ETRM will need to obtain some data from outside the system, such as the
Unique Trade Identifier. How will the system obtain such data? In addition, certain IDs will need to be
“enriched” (see the next section).
Record keeping – how does the system store a record of what was actually sent to the repository?
The relative pros and cons of using such an adapter will be considered in section 6.4.
Copyright 2016 – ETR Advisory Ltd and Commodity Technology Advisory LLC
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