Since 12th February 2014, financial institutions have been obliged to report their derivatives transactions to one of six trade repositories approved by the European Securities and Markets Authority (ESMA). KAS BANK currently reports its transactions and those of many client firms to the trade repository REGIS-TR. Later this year, we will also have the capability to report Exchange Traded Derivatives (ETD) to REGIS-TR. KAS BANK will be able to offer this possibility also for your underlying clients.
Mandatory notification of OTC derivatives transactions The reporting obligation stems from the introduction of the European Markets Infrastructure Regulation (EMIR) in all European Union Member States. Through EMIR, ESMA wishes to gain a clear understanding of the underlying risks of the overall derivatives market.
KAS BANK actively supports its clients in meeting their EMIR requirements on time. With our EMIR services clients can fully focus on achieving their own business goals. Transactions are received daily and then processed in a report to REGIS-TR. We check daily that all transactions are complete and report, where necessary, retroactively to REGIS-TR. In this way, we ensure that your institution timely complies with the notification requirements under EMIR.
We already report derivative transactions for more than 100 financial institutions. Since 12th February, we have successfully reported more than 5,000 OTC transactions for our clients.
The EMIR App: clear insight in your reported and matched OTC derivatives transactions In order to optimally support your EMIR requirements KAS BANK is launching – a first among European custodians – a special EMIR app in the coming months. The app includes a reporting module with up-to-date information about which OTC derivatives and derivatives transactions are reported to REGIS-TR and which transactions are matched in this register. That way you always have a timely and complete picture of your transactions and EMIR reports. Watch this space for more info on the EMIR App.
Mandatory notification of Exchange Traded Derivatives KAS BANK meets the requirement to notify Exchange Traded Derivatives (ETD) by reporting to REGIS-TR. These transactions are both reported and matched with the counterparty in REGIS-TR.
Later this year, we can also report your Exchange Traded Derivatives (ETD) to REGIS-TR. We offer this possibility also for your underlying clients.
In addition to the requirement to notify transactions of KAS BANK clients, we also tender this requirement for non-clients with a third-party clearing provider. A British or German pension fund, for example, that uses a UK or German clearing member can execute its reporting duties through partnership with KAS BANK.
Because we draw up a report in which both OTC and listed derivative transactions are reported, we will always provide a full EMIR report, ensuring full and simple EMIR compliance.
Mandatory clearing of OTC derivatives As the EMIR legislation continues to be rolled out, the next requirements are almost upon us already. ESMA has recently designated a number of Central Counter Parties for mandatory clearing of OTC derivatives. We will support you with this obligation with a unique proposition which gives you access to several General Clearing Members through KAS BANK. You will be further informed about this proposition shortly.