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Kinetic Partners unveils Emir checklist
13 February 2014
To help firms understand how their systems will cope with Emir
Kinetic Partners has launched a checklist for the
implementation of the European Markets Infrastructure
regulation (Emir), aimed at helping firms gain a firmer
indication of how their systems will cope with the new
Emir will require firms to report all derivative contracts to
the regulator and also establish common reporting standards
across the industry.
The checklist will focus on two key areas that firms are
struggling with, including regulatory challenges and
In identifying several critical action items for establishing
effective Emir reporting processes, the overview document will
outline how firms' systems might manage processing all the new
Management teams will then be able to focus resources on the
areas where they are most needed. As with all reporting of
transactions, it is an area of regulation where focus and
prevention, are far better than cure.
Simon Appleton, director, markets centre of excellence, at
Kinetic Partners, said: "We have developed this checklist to
give firms a snap shot of their progress towards being
compliant with Emir reporting.
"From our work with clients we have picked up on a number of
operational and regulatory challenges, including larger banks'
fears over the complexity of the reporting and sheer volume of
accurate data needed and smaller firm's apprehension that they
do not have the internal capacity and infrastructure support to
manage the changes.
"Our Emir checklist is designed to be used by firms of all
sizes as they tighten their systems and controls over the
Monique Melis, global head of consulting, Kinetic Partners,
added that reporting has evolved since her time as head of the
UK Financial Services Authority's (FSA) transaction reporting
unit, with the financial markets, products, technology and
global trading becoming increasingly complex and diverse.
"As a result of the 2008 financial crisis, Emir trade reporting
was born and will be a key tool for monitoring risk in the
derivatives space. The sheer amount of data fields and events
which need to be reported means the report itself has to be