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electronic Portfolio Reconciliation (ePR) the new EFETnet service to support regulatory reporting needs is live!

Date

01 Apr 2014

Sections

Euro & Finance
Trade & Society
EFETnet, EFET’s operational service organisation, has deve new electronic Portfolio Reconciliation service for Europe.

Portfolio Reconciliation addresses three key requirements:
1. Live now, fully automatic reconciliation between eRR users, for free
2. Ahead of the next quarterly run in June, semi-automatic reconciliation between eRR users
and non-eRR users if Counter Party data is uploaded - for free
3. Preparation of documents for manual reconciliation against all other CPs - for free

On March 15th 2014  EFETnet’s ePR  service went live  as additional service within  electronic Regulatory
Reporting  (eRR),  providing  electronic  portfolio  reconciliation  services  to  the  electronic  Regulatory
Reporting  customer  base  and  beyond.  Portfolio  reconciliation  is  mandatory  for  wholesale  traders  of
derivatives  in  energy  markets  in  Europe  under  EMIR  since  September  16
th,  2013  as  part  of  the  EMIR
Risk  Mitigation  Techniques.  As  of  today,  ePR  users  are  able  to  reconcile  their  portfolios  against  other
eRR users automatically. The capability to reconcile towards non-eRR users will be available end of May
2014.

ePR  offers  a  solution  for  compliance  with  the  portfolio  reconciliation  obligations  under  EMIR.  ePR
operates  through  a  single  industry  standard  (see  hyperlink  on  the  efet  website
http://www.efet.org/Standardisation/IT-And-Electronic-DataExchange-Standar...)  and  in  accordance  to  the  eRR  service,  based  on  the  extensible  open language  CpML1. The  solution  provides  a  detailed  trade-per-trade  reconciliation  with  a  user-friendly
report on matches and mismatches

Background
EFET’s many years’ experience working within the energy trading industry establishing and maintaining
an  industry  wide  set  of  standards  for  transactional  data  exchange  has  underpinned  the  ePR  solution.
The  electronic  Confirmations  Matching  (eCM)  open  standard  has  been  in  place  since  2003,
standardising OTC transactional data exchange between traders and brokers.

Last  year,  the  industry  requested  EFETnet  to  conduct  a  regulatory  reporting  pilot  project,  calling  for
active participation in order to apply and extend CpML to regulatory reporting requirements and  to test
a reference implementation of the application of a standard operational process for reporting. The pilot
project  was  joined  by  15  companies  and  provided  crucial  insight  and  understanding  of  reporting
regulations  resulting  in  the  publication  of  the  open  EFET  electronic  Regulatory  Reporting  standard
(eRR) and substantial contributions to the open CpML data standard.

About EFETnet
EFETnet B.V. was set up in 2004 by the European Federation of Energy Traders (EFET). EFETnet was
created to deliver the benefits of electronic data exchange standardisation which was first pioneered by
EFET and its members.  EFETnet develops and offers advanced software for automated energy trading
at the lowest cost, based on open market standards, known as CpML.

Since  2011  EFETnet  has  offered  the  Central  Matching  Service  (CMS),  a  central  platform  offering
Straight Through Processing to over 80 energy trading entities. The CMS allows users to connect across
the energy trading landscape using a simple interface, connecting the trading systems of organisations
to the CMS back-end and allowing access via a web front-end. The CMS, a one-stop-shop solution, will
simplify operation, reduce internal support  effort  and  costs and  improve business usage by offering  a
fully  outsourced  set  of  services  for  electronic  Confirmation  Matching  (eCM),  electronic  eXchange
Related  Process  (eXRP)  for  mandatory  clearing  and  electronic  Regulatory  Reporting  (eRR)  for
mandatory reporting and portfolio reconciliation.

EFETnet is the cost sharing vehicle for the energy trading industry and is a partner with extensive
knowledge and experience in the market.

For more information:
More information about EFETnet and eRR at www.efetnet.org
Hugh Brunswick, EFETnet Managing Director, h.brunswick@efetnet.org
Filip Sleeuwagen, EFETnet Commercial Affairs, f.sleeuwagen@efetnet.org

 

*1CpML: Commodity product Mark-up Language, the language based on the EFET open standards for OTC
(electronic Confirmations Matching – eCM) and cleared (electronic eXchange Related Processes  – eXRP)
transactions in the energy and commodity trading sphere.

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