In response to banks' demand, SIX is to establish a central trade repository for derivative transactions in Switzerland.
The service from SIX will use the reporting technology of London Stock Exchange Group’s (LSEG) UnaVista platform. The solution will be operated and hosted by SIX and will allow Swiss clients to fulfil their reporting obligations under the Swiss Financial Market Infrastructure Act (FMIA), which is currently in parliamentary consultation.
By establishing trade repositories for derivative transactions, the new Swiss legislation implements the G20 obligations agreed in 2009 in response to the financial crisis. The derivative transactions will be uploaded to the SIX controlled trade repository which will record the details of the transactions. Following validation and consistency checks, the information collected will be passed on to the supervisory authorities, as well as aggregated and made available to the public in anonymized form. This information will allow supervisory authorities to identify risk concentrations and, therefore, systemic risk at an early stage.
SIX clients will benefit from UnaVista's well-established and proven regulatory reporting technology. The flexible platform has been constantly evolving to address new regulatory reporting obligations in various financial markets, and has won many awards in the process, including European Trade Repository of the Year 2014. The partnership will ensure that SIX clients will stay ahead of regulatory and technological developments in the reporting industry and will have a reporting solution in due time to fulfil the FMIA obligations which are expected to come into effect in the course of 2016.
Thomas Zeeb, Division CEO SIX Securities Services: «We are delighted to be partnering with London Stock Exchange Group to offer a repository service for derivatives. The UnaVista platform enjoys an excellent reputation and offers our Swiss clients access to a proven best in class solution. This reflects our intention to continuously support our clients in fulfilling regulatory obligations in the most cost- efficient and reliable way.»
Mark Husler, Global Head of Product Management, Information Services, LSEG: «This is a very exciting partnership opportunity; we are looking forward to working with SIX to offer the Swiss financial markets the most advanced trade repository in the world. This is a landmark relationship for LSEG, as we look to work with more global infrastructure providers, such as exchanges, regulators and CCPs to use UnaVista as their in-house technology for regulatory reporting, reconciliation and data.»