REMIT Reporting Services and Solutions - July 2015 updated March 2016
The substitution may be a simple switch, or more advanced. For example a specific contract may be translated into
several fields’ worth of standard coding.
When data is loaded into a stand-alone system, some of it may also be missing, and it will be the job of the software
to complete the data. The software will employ a variety of means to do so, such as, matching data from different
systems, using pre-defined product codes to determine other fields or linking together records from different parts
of the trade lifecycle.
Data enrichment is a key function of stand-alone software and is often one of the main drivers for purchasing it.
6.2.6.3 Regulatory routing
A standalone package will usually offer functionality that can determine under which rule set a trade falls, and to
where it should be reported, given its attributes. The package will usually look at attributes such as where it was
executed (both in terms of country and venue), the type of trade, the commodity and the delivery date.
For example, a trade will need to be reported under REMIT if it is:
- A gas or power trade
- For delivery in the EU
- And has not been reported under EMIR
A standalone regulatory reporting package will be able to examine the field attributes and determine which trades
are “in” and which trades are out. In order to correctly evaluate the above rules, the system would also need to be
able to determine which trades are in EMIR. In some cases the software will connect to a TR/RRM, which will move
some of the routing logic “out” to the TR/RRM.
Given that the rules change over time, the package vendor will need to provide regular updates to ensure
compliance.
Copyright 2016 – ETR Advisory Ltd and Commodity Technology Advisory LLC
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