RiskTech Forum

BearingPoint Establishes Software For ECB Reporting Requirements

Posted: 8 July 2016  |  Source: BearingPoint


Management and technology consultancy BearingPoint, which ranks among the leading providers of regulatory and risk technology (RegTech/RiskTech), announced that their clients using ABACUS/Transactions successfully completed the test phase for the new daily reporting requirements according to the EU directive from the European Central Bank (ECB) from November 26, 2014, on Money Market Statistical Reporting (MMSR).

Since April 1, 2016, around 150 financial institutions in the Eurozone are in a three-month test phase with the ECB and their national central banks. Participation is mandatory for the institutions. During the test phase, data quality should be increased successively until the start of the productive reports on July 1, 2016. Over 15% of the reporting institutions in the Eurozone have decided on ABACUS/Transactions.

"The successful completion of the MMSR test phase is an important milestone for us. Thanks to the implemented processes for functional and technical quality assurance of the reports and the high automation level, ABACUS/Transactions has been successfully established on the market as a standard product for transaction-based reporting. In the future, BearingPoint will, aside from EMIR and MMSR, also support reporting requirements according to FMIA/FinfraG, MiFID II/MiFIR and SFTR with the software ABACUS/Transactions." - Dr. Maciej Piechocki, Partner at BearingPoint

The high automation of the product is mission critical because there is not much time for the institutions to create the daily report. Due to the very early delivery time – for German institutions, e.g., daily by 6:30 am to the Deutsche Bundesbank – daytime processing of trading data is hardly possible. The report should ideally be fully automated, which is a challenge for many institutions. A timely processing is also required for the feedback reports.

"The reporting obligation is valid for the whole Eurozone. With the MMSR module, ABACUS/Transactions enables institutions to create and submit reports across countries. For the reports, the ISO 20022 standard is used, which facilitates a standardized submission of MMSR reports to the respective national central banks and to the European Central Bank. Also the upcoming MiFIR report, which is mandatory from 2018, will be based on this standard." - Sabine Pieper, Senior Manager at BearingPoint

In addition, functional conditions such as the report steered asymmetry via counterparty classes or the consolidation of trading activities into one relevant data set per day pose high requirements for the reporting software.

With ABACUS/Transactions, BearingPoint has expanded its market-leading Abacus Solution Suite by a standard software solution for transaction-by-transaction reporting. ABACUS/Transactions helps to meet the increased demand for even more granular intra-day transaction data calculation. The ABACUS/Transactions modules TR and MMSR are covering the reporting obligations of derivative contracts to an authorized trade repository (EMIR reporting) and the reporting of euro-dominated money market transactions to the Deutsche Bundesbank / European Central Bank. The relevant transactions for these reports are being delivered to ABACUS/Transactions by the banks´ front- and back-office systems via a predefined interface. Additional modules for MiFID II/MiFIR and SFTR as new European reporting components as well as the Swiss derivatives reporting according to FMIA/FinfraG to the trade repository RegisTR are in preparation.