Reports EU Regulations REMIT Reporting Services & Solution | Page 45

REMIT Reporting Services and Solutions - July 2015 updated March 2016 6.4 Comparing solution types The following chart compares the solution types and considers when each would be appropriate: Delegation (via OMPs or other, e.g. to counterparty) Upload using files to RRM Pros Cons Considerations When best  Least amount of “work”, especially with heavy use of OMPs.  Can delegate off venue trades to one or more counterparties  Delegated responsibility under REMIT  Complete control  In some cases a simple solution  May be relatively cheap for smaller volumes  Control of data        How many OMPs are traded on  Volumes  For off venue, number of counterparties and whether they offer delegated reporting  Those who trade on few OMPs, or for small market participants who trade with larger counterparties offering a delegated service. Access to data still needs to be considered. Also consider new answer of February 2016.  Volume  Complexity and variety of data  For those with a small amount of data  Volume  IT capability  Willingness to be transparent  For larger players who have a deep IT capability and wish to maintain control  Where is data?  Does vendor offer a connector and to which destination?  Cost  For those where most data is in one RRM and vendor offers a solution Direct send to ACER (i.e. become RRM)  Full control  Access to information from ACER  No fees Software – ETRM Adapter  Could be a simple solution  Outsource work of understanding requirements to someone else  Maintenance of adapter by someone else Could require many agreements Loss of control Post trade events for broker traded May end up expensive Loss of “control” Lack of access to data for use in investigations  Could get complex if too many trades  Will need to get files into appropriate formats  Difficult to handle life cycle events  How to get how of OMP data  Hard to make work for orders  Possible increase in liability  Will need to pass ACER security and financial requirements  Will need to pass ACER tests  Subject to audit  Not permitted for OMP data  Possible increase in liability  Only works if most data is in one ETRM  Relying on someone else for solution  How to handle orders and OMP trades Copyright 2016 – ETR Advisory Ltd and Commodity Technology Advisory LLC 44