Research European Commodity Market Regulations - Part 1 | Page 43

European Energy Market Regulations V3.1

Portfolio Reconciliation/Dispute Resolution
In the area of portfolio reconciliation, we are currently aware of only one third party service (there
are bilateral solutions and agents available) although we understand that others maybe planned by
EFET, for example. Additionally, some of the data repositories such as REGIS-TR will perform
portfolio reconciliation as a part of their activities and it is conceivable that they may offer such a
service in the future. Otherwise, portfolio reconciliation will be a largely manual process.

TriOptima triResolve
triResolve is designed to help manage counterparty exposures and provides portfolio
reconciliation, margin call management and dispute resolution. triResolve highlights any
areas of dispute from the individual transaction level up to the margin call. Users have
access to a web-based, flexible platform that enables communications between
counterparties and even internally to provide detailed information to resolve differences. In
the proactive reconciliation process, differences are researched immediately and resolved so
they don’t persist contributing to disputed collateral calls. However, if a collateral dispute
does arise, the triResolve communications capability enables counterparties to research and
resolve the problems in real time.
triResolve is an alternative to bilateral portfolio reconciliation, which can quickly evolve into
a messy process, which involves sending around a great deal of files and is very prone to
error.
triResolve has applied its expertise to the range of challenges in the bilateral collateralization
process introducing margin call calculation and administration functionality as well as
reconciliation of key ISDA CSA terms. Margin calls can be issued, accepted or disputed on
triResolve in a manner that complies with the ISDA standard for electronic margin calls.
By identifying trade mismatches with counterparties, CCPs, DTCC, and/or custodians through
an automated reconciliation of OTC derivatives and securities financing portfolios, this daily
independent verification of books and records ensures that users can:
• Identify discrepancies in tra