News 21/08/12

Trace Financial enhances Transformer for EMIR

Trace Financial announced today that it has released a complete FpML 5.5 library for Transformer, the company’s advanced message transformation application.

FpML 5.5 addresses the requirements of firms which need to report OTC Derivatives to trade repositories in line with Europe’s EMIR regulations, which will come into force on 23 September for credit and interest rate derivatives, with all other asset classes needing to report from 1 January 2014.

Transformer and FpML messages

Transformer provides many advanced features to solve the challenges of working with complex FpML messages. For example, these messages often contain repeating complex components such as parties or trade legs.

The Transformer GUI now includes a set of screens to help users easily construct the predicate logic needed to find and select one item from the set, such as the first party which has a certain role in the trade. Features like this allow FpML mappings to be constructed far more efficiently.

Further FpML releases are expected, as the International Swap Dealers Association (ISDA) noted on 30th May: “Work has started on version 5.6 with a goal to cover requirements in jurisdictions where reporting to trade repositories is expected to go live towards the end of 2013 and in early 2014, including several Asian jurisdictions”.

John Murphy, Managing Director of Trace Financial, said: “Firms electing to report via the DTCC’s Global Trade Repository for example will be using FpML. Other repository providers will either use FpML or define alternative message standards. All of these will be supported in Transformer, to ensure that Transformer clients operating in the OTC derivatives space continue to have all the standards support they require”.