London-based Xtrakter is now reporting derivative transaction data for clients to the UKs Financial Services Authority (FSA) using a newly implemented industry format the Alternative Instrument Identifier (Aii).
Under compliance with MiFID legislation, the use of Aii (Alternative Instrument Identifier) for transaction reporting across Europe for derivatives admitted for trading on regulated markets will become compulsory or reporting to the FSA as of Nov. 13, 2011.
Using Xtrakters TRAX interface, which the company says is an approved one-stop regulatory reporting solution, clients have a cost-effective means to comply with all of their transaction reporting obligations, according to todays release. Supporting both batched and real-time messaging, the TRAX platform has the flexibility to suit all client integration models. Currently, TRAX enables its users to report derivatives transactions using Aii to the Dutch and French regulators, namely De Autoriteit Financiï¿½le Markten (AFM) of the Netherlands and Autoritï¿½ Des Marchï¿½s Financiers (AMF) of France.
:Our close collaboration with clients, trade associations and national regulators has enabled us to jointly deliver an industry-accepted format tailored to the specifics of derivatives contracts,commented Yannic Weber, CEO of Xtrakter, a provider of capital market data, trade matching and regulatory reporting, owned by Euroclear, the cross-border settlements organization.
Regulators across the globe have been demanding far greater levels of transparency around the composition of derivatives, continued Weber. The Aii format delivers this level of precision by providing the derivative type, trading venue, maturity, strike price, among other pertinent information within its scope. Moreover, firms availing of the new service will not run the risk of paying heavy fines as a result of non-compliant or erroneous reporting methods.
Aii is a method of identifying derivative instruments which do not have ISIN codes. Since November 2007, transactions in derivatives admitted for trading on a regulated market have been reportable to the FSA; where the ISIN was not a standard way of identifying instruments, this requirement was deferred so that the FSA and the industry could prepare to use Aii.
The Aii methodology was devised by FESE (Federation of European Securities Exchanges) and adopted as a standard by CESR (Committee of European Securities Regulators), according to XTracker.