Research European Commodity Market Regulations - Part 1 | Page 19

European Energy Market Regulations V3.1

Required Solution Activities
While this document is not intended to be a comprehensive guide to building a reporting solution,
here we identify some key tasks that the majority of participants will need to undertake to have a
working solution:
Data sourcing and gap analysis
Before data can be provided to any destination, it must be sourced from somewhere, be it the
E/CTRM(s), trading platform or spreadsheet.
It is important to perform a data gap analysis as early as possible to ensure that you have all of the
required data from each product type traded. This will involve going through each product type
traded, and for each field required (under EMIR or REMIT) ensuring that you know here it can be
found. It is not sufficient to simply map to the source field in an E/CTRM, It is also necessary to
ensure that the business process in place updates this field.
Data mapping and capture
There must be a mechanism in place that can rapidly identify all qualifying trades (new, modified,
voided etc.), extract the required data items for reporting purposes from possibly multiple systems,
and format the data appropriately for transmission to the trade repositories. Furthermore, the data
must be validated for missing items, correct formats and codes, and corrections must be made
manually or automatically prior to transmission.
Whatever systems are in use to capture and process trades including vendor provided, home grown
or even spreadsheet-based solutions, they must contain all of the required data items that are to be
reported. Furthermore, there must be processes in place to ensure the capture these data items for
reporting purposes.
Configuration choice and connection mechanism
It will be necessary to select the “shape” of configuration choice. It is possible to select several
configurations; for example, a large participant could report most OTC and physical trades directly,
but chose to use the exchange’s facilities to report ETD, and to upload some rarely traded physical
deals manually.
If not outsourcing completely and building an internal solution, it will also be necessary to select a
connection mechanism. This could involve either building one internally, or purchasing reporting
software that has adapters built in. The incumbent E/CTRM system may also have built in adapters
to one or more destinations.
Data enrichment
The various reporting destinations require entities and product to use standard identifiers, such as
LEIs, EICs, UPIs, and ISINs etc. There are several entity records for most deal types, and each requires
different product information. In addition, some other information, such as “Counterparty status”
flags are required.
As a result, each trade must be “enriched” with appropriate standard data. The difficulty of this task
varies by number of trades, trade types and source system.
Reporting software will usually offer a solution to the iss Ք