TriOptima, leading provider of OTC derivative post trade risk services, announces that its triResolve service for portfolio reconciliation offers a solution to the unmatched trade problem reporting institutions are facing in European trade repositories.
Under EMIR reporting rules, firms can either send their trade data directly to a repository or they can delegate another firm to send the data on their behalf. Trades sent to the repository by each counterparty or its representative should have UTIs (Unique Trade Identifiers) and LEIs (Legal Entity Identifiers) so they can be matched.
Since implementation of the European reporting rules in February 2014 a large number of trades have been sent to the repositories without UTIs or LEI’s, and even when these are included they frequently do not match. This prevents the pairing of trades between and within repositories.
The absence or mismatch of a UTI prevents reporting firms from validating the trade data sent to the repositories and fulfilling their responsibility to ensure the accuracy of reported data. triResolve repository reconciliation leverages the comprehensive reconciliation functionality already in triResolve, and offers an alternative way to identify unmatched trades.
In the triResolve repository reconciliation service, firms send directly or authorize the trade repositories to send their repository records to triResolve. triResolve is able to match trades without UTIs or LEIs which cannot be achieved in the repositories. triResolve can also identify discrepancies across the approximately 60 additional data fields so firms can resolve the data problems and agree the identifiers and trade terms with their counterparties.
“triResolve’s repository reconciliation is the only place where firms get a complete picture of all reported data fields for both sides of a transaction, and can work to correct the discrepancies,” said Raf Pritchard, CEO of triResolve.
Currently triResolve has over 1200 firms using the service globally, reconciling over 75% of all global bilateral OTC derivative trades. triResolve also reconciles cleared and exchange-traded transactions as well as repos and securities lending trades.