REQUEST FOR INFORMATION

Transcription

1 May 2017 REQUEST FOR INFORMATION FINFRAG REPORTING TRANSACTION SERVICES This Request for Information provides information to clients who would be interested to report transactions under FinfraG regulation through trade repository. is open to financial and non-financial institutions and services all of the major regulatory reporting obligations in Europe.

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3 profile Legal name:... Regis-TR, S.A. R.C.S. Luxembourg:... B Headquarters:... Grand Duchy of Luxembourg Address:... 42, Avenue John F. Kennedy L-1855 Luxembourg Date of foundation:... 9 December 2010 Years of experience:... 6 years as a trade repository Information about s business Present in: countries Number of clients accounts:... c1,394 clients Parents companies key figures Deutsche Börse AG Revenues in c2.4 billion Number of employees... c4,800 employees Bolsas y Mercados Españoles Revenues in c330 million Number of employees... c760 employees Contact details Onboarding team:... finfrag-onboarding@regis-tr.com / Regulator support:... regulators@regis-tr.com / Client services support team: finfrag-support@regis-tr.com /

4 Table of Contents 1. Introduction overview structure Financial performance FinfraG regulatory status FinfraG regulation overview FinfraG regulatory approval Multiple jurisdictional regulatory approval and supervision services for FinfraG reporting: participation models and account structures Reporting models and profiles Account information FinfraG reporting technical solution FinfraG reporting mechanisms Rejection reporting Exception reporting Types of output reports IT infrastructure Overall system infrastructure Back-up capabilities New software implementation process Unauthorized access protection Data protection Data collection, retention and publication Data access for authorities and third parties Data security Legal and Compliance Legal framework Proximity to the regulators s service support s client services support team s Relationship Managers Onboarding support and experience Dedicated private user area Events and network information Tariff Pricing structure Next steps

5 1. Introduction 1.1. overview S HISTORY What is the history of as a trade repository? is a European joint venture that was founded on 9 December 2010 with the purpose of reporting trades and transactions across multiple product classes and jurisdictions. It has been created with an objective of simplifying regulatory reporting obligations by providing a consolidated service to comply with the full range of EU and European financial reporting requirements. has been launched by the Spanish CSD, Sociedad de Gestión de los Sistemas de Registro, Compensación y Liquidación de Valores, S.A. (referred to as Iberclear ) and Clearstream Banking S.A. (referred to as Clearstream ) and is headquartered in the Grand Duchy of Luxembourg. VISION AND MISSION What is the vision of? s vision is to offer a user-friendly and efficient trade repository solution for the reporting of derivatives trades as required under EMIR and FinfraG. s services have been tailor-made to make it easy for all types of participants to meet their reporting obligations in derivatives and other products. In that context, the one-stop-shop will also allow participants to cover requirements stemming from future regulations such as SFTR. What is the mission of? An important part of s mission is to ensure clients can make significant efficiency gains. Indeed, is currently a trade repository with the direct status to offer reporting for EMIR and FinfraG. By offering SFTR reporting in the near future, will be the only trade repository able to provide clients with reporting services across all of the major European regulatory reporting obligations. By offering all of these services through a single reporting agency, clients can benefit from significant efficiencies and economies of scale when reporting through. SERVICES OFFERED FOR REPORTING What is the offer of for reporting trades? already delivers a comprehensive reporting service for financial instruments under the EMIR and FinfraG regulations. Its future service offering will be further extended to include SFTR reporting, while also delivering services that maximize operational efficiency for clients through a single reporting agency. In addition to its core reporting service, will deliver a comprehensive range of services to further assist market participants with your reporting needs (i.e.: detailed Management Information System (MIS) reporting and other bespoke reports). With over 20 relationship managers located in Zurich, Luxembourg, London and Frankfurt, also has a strong client relationship management network. is the only trade repository where your relationship can be fully managed in French, German, Italian, English, Luxembourgish, Dutch, Spanish, Portuguese, Russian, Polish and Slovenian. Along with that, a dedicated helpdesk support is provided as well as a high level of data protection and privacy under EU laws for National and European regulations and under Swiss laws for FinfraG regulation. 2

6 What does offer for integrating FinfraG regulation? clients can leverage on existing infrastructure, including connectivity and similar message formats to fulfil both EMIR and FinfraG reporting obligations, thereby building synergies in their reporting requirements. s objective in the medium term is to provide a one-stop-shop with one common connectivity and graphical user interface (GUI) for all of your European regulatory reporting requirements. What are the asset classes covered by? covers all existing asset classes identified in the FinfraG and EMIR regulations structure OWNERSHIP STRUCTURE What is the ownership structure of? is a 50/50 joint venture between Clearstream, owned by Deutsche Börse AG (DBAG), and Iberclear, that is owned by Bolsas y Mercados Españoles (BME). BOARD OF DIRECTORS What is the composition of the Board? s board includes the following members: Jeffrey Tessler, Jose Massa, Philip Brown, Jesus Benito, Berthold Kracke and Elena Carnicero. Does it include representation from people experienced in the derivatives industry? has access to a substantial pool of expertise via Deutsche Börse AG (DBAG) and Bolsas y Mercados Españoles (BME). The two groups include derivative exchanges across all product classes including energy, CCPs as well as CSDs with a significant collateral management and secured financing experience. Besides, its executive management has extensive derivatives experiences across futures exchange supervision, options trading as well as middle-office and IT development competency specific to the OTC derivative sector. 3

7 EXECUTIVE MANAGEMENT Who is part of the Executive Management at? The Board of director delegates responsibilities to the Group Executive Management, which is composed of Elena Carnicero, Irene Mermigidis and David Retana. Elena Carnicero Elena Carnicero joined as CEO in Irene Mermigidis Irene Mermigidis joined as Managing Director in David Retana David Retana joined as Managing Director in GOVERNANCE STRUCTURE What is the governance structure of? The day-to-day management of the Company is delegated by the Board of Directors to the Group Executive Management. The Group Executive Management is composed of Elena Carnicero as a Chairman and David Retana and Irene Mermigidis as Managing Directors. The Group Executive Management reports to the Board of Directors, determining and coordinating the management and the business lines of the company, having a leading role in administration, organisation and development. In this sense, the members of the Group Executive Management coordinate their activities with each of the members of the Board of Directors in line with their respective areas of responsibility. Governance structure of 4

8 Is there any user advisory group dedicated to? Yes No has set-up an advisory group that is dedicated to the trade repository with representation from the main client segments: Exchanges/CCPs Investment banks and clearing houses Corporates Universal banks active across retail and private banking, wealth management, and depository banking activities Software vendors, and consultants 1.3. Financial performance FINANCIALS AND CAPITAL How much capital is committed to? maintains a share capital of 3.6 million euros and a capital reserve of 3.4 million euros. REGIS- TR is in full compliance with article 21 (b) of the EU delegated regulation 150/2013 by meeting the minimum capital requirement set-out by European Securities and Markets Authority (ESMA) to exercise its role as an authorized trade repository. AUDIT INFORMATION What are the audit requirements for Trade Repositories? ESMA may perform audits on s global and specific activities related to EMIR on an ad-hoc basis. For FinfraG reporting, FINMA supervises and may proceed to auditing exercises on s activities on an ad-hoc basis. In order to be in line with audit standards, has its own Chief Internal Auditor and develops an internal three-years audit plan up to cover all audit objects. The most critical objects are audited on a yearly basis. How is positioned compared to the audit standards? internal audit activity governs itself, as defined in its audit charter, by adherence to the Institute of Internal Auditors' mandatory guidance, including the Definition of Internal Auditing, the Code of Ethics, and the International Standards of the Professional Practice of Internal Auditing (Standards). 5

9 2. FinfraG regulatory status 2.1. FinfraG regulation overview FINFRAG REGULATION OVERVIEW What is the rationale behind FinfraG regulation? The Swiss Financial Market Infrastructure Act (FMIA), also known under the German denomination FinfraG (Finanzmarktinfrastrukturgesetz), came into force on 1 January It regulates: The organisation and the operation of financial market infrastructures, for example, stock exchanges and central counterparties; The trading of derivatives; The conduct of business rules, for example, insider trading and market manipulations, shareholding disclosures and public takeovers offers The main rationale behind FinfraG regulation is to increase transparency in the Swiss OTC derivatives market, and to mitigate systemic, counterparty and operational risks. The objective is to align the Swiss regulatory framework with international standards, in particular with the EU regulations (MiFID, MiFIR, EMIR and CSDR) with a view to preserving Switzerland's global competitiveness. Specifically regarding derivatives trading, FinfraG introduces broad changes to the Swiss derivatives market and aims at increasing transparency, reducing counterparty and operational risk in trading as well as enhancing market integrity and oversight. Which entities should report under FinfraG regulation? FinfraG affects all entities, which have their registered office in Switzerland and enter into derivative trading ( Swiss counterparties ). Both financial counterparties (e.g. banks, brokers, insurance companies, asset managers etc.) and non-financial counterparties (e.g. trading companies, corporation etc.) are under the scope of this reporting obligation. As the reporting under FinfraG is single sided, only one counterparty has to report. Specific reporting obligations need to be considered under FinfraG regulation: In the case of transactions between a financial and a non-financial counterparty: the financial counterparty has the reporting obligation In the case of transactions between two financial counterparties: i) the financial counterparty which is not small in accordance with Article 99 has the reporting obligation, ii) the selling counterparty has the reporting obligation in the case of a transaction between two financial counterparties or between two small financial counterparties The counterparty which has its registered office in Switzerland if the foreign counterparty does not report: o In the event of a transaction between non-financial counterparties, paragraph 2 letters b and c applies by analogy. A transaction between small non-financial counterparties does not have to be reported o If the transaction is cleared centrally, the report is submitted by the central counterparty. If a recognised foreign central counterparty does not submit reports, the reporting duty shall remain with the counterparties o Third parties may be involved in reporting o If there is no trade repository, the Federal Council shall indicate the body to which the report is to be submitted 6

10 What needs to be reported? The following transactions need to be reported under FinfraG regulation: All the financial transactions belonging to the following asset classes categories: Commodities (CO), Credits (CR), Currencies (CU), Equity securities (EQ), Interest rates (IR) and other derivatives (OT). Every event of the transaction lifecycle: origination, modification, valuation and termination Reporting of transactions, positions and valuations For each reported transaction, the following information should be included: Transaction identification: UTI Counterparty identification: ID (LEI, BIC), name, seat Product identification: asset class (CO, CR, CU, EQ, IR or OT), product type (option, swap, forward ), notional, price, maturity date, settlement date, currency Transaction information: time of the transaction As of the reporting obligation is applied, to whom and when should entities report their trades? Reporting entities should report to a trade repository that has been authorised or recognised by FINMA on the following day of the transaction (T+1) at the latest. For information regarding the reporting obligation start date, please refer to the section "2.2. Approval status of FinfraG" below FinfraG regulatory approval FINFRAG REGULATORY APPROVAL STATUS FOR When did get the approval for FinfraG regulation? The European trade repository has been formally recognized as the first foreign trade repository for Switzerland by the Swiss Financial Market Supervisory Authority (FINMA) on 1 st April The official announcement was made by FINMA on 3 rd April When is the reporting start date? Depending on the counterparties typology, the reporting obligation for FinfraG will start 6 to 12 months after the date of the first authorization or recognition of a trade repository by FINMA. Reporting date for open derivatives transactions: Central counterparty (CCP) or a financial counterparty (FC) which is not small is subject to the reporting obligation as of 1 October 2017 Small financial counterparty (FC-) or a non-financial counterparty (NFC) which is not small is subject to the reporting obligation as of 1 January 2018 Transactions between two small non-financial counterparties (NFC-) do not have to be reported Reporting date for all other outstanding derivatives transactions: All transactions should be reported as of 1 April 2018, except for transactions between two small non-financial counterparties (NFC-) For derivatives transactions that are traded via trading venues or via the operator of an organized trading facility, all the reporting obligation deadlines mentioned above shall be extended by six months according to Art. 130 para. 2 FMIO NATURE OF THE FOREIGN TRADE REPOSITORY What is the nature of in Switzerland? is officially a foreign trade repository recognised under Art. 80 of FinfraG in Switzerland, enabling market participants to meet their transaction reporting obligations under the FMIA. As a foreign trade repository, has fully adopted the Swiss reporting requirements outlined in the regulation. Trade repository reporting is estimated to begin on 1st October 2017, with a phased-in approach, depending on the counterparty classification. 7

11 2.3. Multiple jurisdictional regulatory approval and supervision MULTIPLE JURISDICTIONAL REGULATORY APPROVAL What are the authorities responsible to approve as a foreign trade repository? The Swiss Financial Market Supervisory Authority (FINMA) is responsible for approving and supervising as a foreign trade repository. FINMA acts as a supervisory authority, protecting financial market clients and ensuring the smooth functioning of the Swiss financial sector. It performs its supervisory tasks using the instruments of licensing, supervision, enforcement and regulation. MULTIPLE JURISDICTIONAL REGULATORY SUPERVISION What are the authorities responsible to supervise the activities of as a foreign trade repository? has been registered on 14 November 2013 with by the European Securities and Market Authority (ESMA) as a trade repository under the EU Regulation 648/2012 of 4 July 2012 (EMIR). Therefore, ESMA supervises s activities for the EMIR reporting activities. FINMA is the competent authority for the supervision of 's FinfraG reporting activities. Although FINMA supervises for FinfraGrelated activities, is subject to an additional layer of stringent supervision by virtue of being ESMA licensed. Are they any legal constraints for market participants who want to report through a foreign trade repository? For market participants, there is no legal difference to report through a local or a foreign trade repository. Therefore, there will be no additional legal obligation for market participants who chose as a foreign trade repository for FinfraG reporting services. 8

12 3. services for FinfraG reporting: participation models and account structures 3.1. Reporting models and profiles THE NATURE OF REPORTING MODELS AND PROFILES What are the different reporting models offered by? provides two types of models for reporting trades: direct reporting and delegated reporting. 1. Direct reporting: Direct reporting is the reporting of trades made by a direct counterparty to the trade who has the reporting duty. Only Reporting Participants can use direct reporting. 2. Delegated reporting: Delegated reporting is the reporting of trades made by an entity that is not a direct counterparty to the trade or by the non-reporting counterparty. Reporting entities can therefore use the delegated reporting model to outsource the reporting of trades to another entity that will report their trades on behalf of the Reporting Entity. Delegated reporting can be done by internal or external third parties or through the counterparty. What are the different reporting profiles offered by? proposes several reporting profiles: Reporting Participant (RF): A direct counterparty to a trade can report on his own behalf and/or can delegate the reporting obligation to its counterparty to the trade. Those two options are offered by for each trade where the client is a direct counterparty. Third Party (TF/EF): Entity that is not a direct counterparty to the trade reports on behalf of others. A Third Party may report on behalf of other members of its family or as a service provider, reporting on behalf of other entities that have outsourced this service: o Internal Third Party: Reports on behalf of members of their company group o External third party: Reports on behalf of other entities Non-Reporting Entities (NF): A direct counterparty to a trade can download end of period reports and delegates the reporting responsibility to a Third Party or to the counterparty of the trade. Non-members: A direct counterparty to a trade who does not have access to the reported data and delegates the reporting responsibility to a Third Party or to the counterparty of the trade. How does support delegated reporting? supports counterparty delegation and third party delegation: Reporting Participants, who gain direct access to the TR and its services, report their own trades and can also report on behalf of the counterparty Reporting Third Parties are those who may not act as a counterparty to a derivative contract, but who have been delegated by an entity belonging to its family group (internal activity) and/or by clients (external activity) to report the contractual data to on their behalf 9

13 What are the pros and cons of the delegated reporting model? Advantages of the delegated reporting model: No membership fees for non-members Non-Reporting Entities benefit from a read-only access to the trades that have been reported by the counterparty or the Third Party Disadvantages of the delegated reporting model: Non-members do not have a read-only access to the trades for which they are a counterparty although they own the reporting responsibility Non-members and Non-Reporting Entities can not control the accuracy and the quality of data reporting, as the reporting obligation is delegated to a third party or to the counterparty Higher fees for Non-Reporting Entities 3.2. Account information ACCOUNT STRUCTURE What are the different types of account? To enable Swiss counterparties to fulfil the obligation to report derivatives transaction as defined in the Article 104 of FinfraG, the following account types have been defined: 1. Reporting Participant account (RFnnnn): Reporting Participant accounts are identified by the code RFnnnn and are for entities who directly report trades for which they are a counterparty. On this type of account, RFs are able to view the reports sent by themselves or on their behalf, along with the identification of the account that has submitted the report. 2. Third party account: o Internal Third Party account (TFnnnn): Internal Third Party accounts are identified by the code TFnnnn and are created for entities reporting on behalf of members of their company group. o External Third Party account (EFnnnn): External Third Party accounts are identified by the code EFnnnn and are created for entities who provide a reporting service to other entities that do not belong to their company group. 3. Non-Reporting entity account (NFnnnn): Non-Reporting entity accounts are identified by the code NFnnnn and are created for entities having a reporting duty that would like to delegate the reporting of trades to another entity but still be able to download the end of period reports for the trades reported on their behalf. Those accounts are therefore only created for a consultation purpose, but Non-Reporting entities will not be able to report directly any trades to. In terms of the last reporting profile category, the non-members, no account will be opened at as those entities don t have a direct access to the data stored. 10

14 SETTING UP AN ACCOUNT AT How to set up an account? 1. Procedure for opening an account in the UAT environment: The procedure for opening an account in the UAT environment will be launched internally as soon as you fill in and send back the UAT Environment form to your s Relationship Managers. The testing account will be available for a period of 6 months and free of charge. You will receive your credentials by to access the UAT Environment and you will be able to test your trades' reporting. Your credentials will also give you the access to the private area of the website, which contains useful technical documentation. This technical documentation is described in the section 8.4. Dedicated private user area (p22). Please note that after 6 months, if you want to maintain your account in the UAT environment, you will need to open an account in the Production Environment. 2. Procedure for opening an account in the Production Environment: Your account in the Production Environment will be generated as soon as the required contractual documentation is signed. For further information regarding the contracts and the onboarding procedure, please refer to the section "8.3. Onboarding support and experience" (p22). By opening an account in the Production Environment, you will be able to use your testing account in the UAT environment on a permanent basis. The opening of an account in production is confirmed to the central coordinator mentioned in the appendix 2 received via mail (original/physical copy). TURNAROUND TIMES FOR ACCOUNT SET UP How long does it take to create an account? The duration of the account creation procedure can vary amongst clients, but it generally takes two weeks in average from the time the client contacts our Relationship Managers until the contract s finalisation. 11

15 4. FinfraG reporting technical solution 4.1. FinfraG reporting mechanisms REPORTING ACCESS MECHANISMS In which way can we report trades to? When a counterparty reports a file to, he can choose amongst the most flexible suite of connectivity channels (Web Service, SFTP Connexion or Private User Interface Connexion). s clients can automatically upload files via the Web Service (SOAP API) or the SFTP Connexion, or they can manually upload files through the Private User Interface Connexion on s website. Automatized reporting mechanisms: Web Service (SOAP API): Members can automate their communications with by means of a web service connexion. With this SOAP web service interface, users will be able to report and obtain the proper responses to their files. SFTP Connection: Members may also automate their communications with by means of a SFTP Connexion. This allows the exchange of files via directories and following a secured protocol. Manual reporting mechanism: Private User Interface Connexion: s FinfraG Private User Interface is a private section from website which allows members to access diverse documentations and to be able to upload files manually. It is an alternative way to any other file transfer connexion or it can be used as a contingency in case the other file transfer connections fail. The member area is accessible only with a user ID and a password which are provided by Helpdesk. What are the services accessible on the Private User Interface Connexion? s FinfraG Private User Interface has two different environments: (1) a test environment accessible via an URL provided by Helpdesk and (2) a production environment accessible via the public website of (login section). In this private area, each user can access a range of different sections that are made to simplify and improve the experience of s clients: 1. Introduction 1.1. User Profile: Includes user information and management options 2. Main 2.1. Reporting Status: Summary of the status of the reported files 2.2. Inputs: File upload as per Connectivity Specifications 2.3. Outputs: Intraday messages 2.4. Search: Queries on reported transactions and positions 2.5. Reports: view, full tracking of the reported files and statistics and download end of period reports 3. Guidance 3.1. User Guides: Access to all the necessary documentation 3.2. Handbooks: Technical requirements to allow trade reporting 3.3. Schemas: Updated XML Schemas 3.4. Legal Framework: FinfraG General Terms and Conditions and Agreements 4. Other 4.1. Latest News 4.2. Contact: Contact Client Support 12

16 What kinds of inquiry capabilities are provided in the Private User Interface Connection? On-line searches Standard reports Save query results Reports downloads Files tracking TYPES AND FORMATS What are the reporting formats accepted by? s clients can deliver reports by using one of the following formats: Propietary CSV format files Propietary XML format files Clients submit their reports using either CSV and/or XML format and choose the format in which they wish to receive their end of Period reports. Please note that the responses are provided in the same format as per the submission. What are the types of report accepted by? For Reported Trades (XT), allows the following report types: N = Transaction being reported for the first time X = Transaction being reported for the first time and a transfer of the transaction to a position is envisaged on the same day. For Modifications (MX), the following report types are allowed: M = Modification of erroneous data, supplementation of missing data or updating of positions D = Modification of the "Trade ID", provided this had not yet been determined at the time of reporting. L = Modifications that arise as a result of certain events during the term of the contract and for which no other value applies (lifecycle events)" For Trade Terminations (TT), the following report types are allowed: E = Report was made erroneously and should be deleted C = Premature termination/cancellation of a contract Z = Compression of an OTC derivatives transaction For Valuations (VU), the following report types are allowed: V = Reporting of a valuation For all Reported Trades (XTs), Modifications (MXs) and Trade Terminations (TTs), the reporting entities have to specify the report level. There are two types of report levels: T = Transaction P = Position 13

17 PROCESS AND VALIDATIONS What is the procedure for validating a transaction reports? Internally, the file goes through a format validation stage where the core system of checks the format of the report the counterparty sent. If the format is valid, the data is checked at the Business Rule validation stage and once the data has been validated, a message is sent to inform the counterparty. The data records is then stored and appears on a reporting status dashboard in the counterparty s account Rejection reporting REJECTION REPORTING Does the service offer rejection reporting? Yes - The core system generates a response report per each inbound report. It shows which messages have been accepted and which have been rejected. For the latter, the report indicates the reason of the rejection Exception reporting EXCEPTION REPORTING Does the service offer exception reporting? For reports that have been already submitted, core system does not allow the amendment of a report directly through the interface. Any reports modifications have to be re-uploaded in the system with a MX message. 14

18 4.4. Types of output reports TYPES OF OUTPUT REPORTS Does the service offer end of day balancing and account control reports, as well as analytical searches? At the end of the day, the system will generate a set of end-of-period reports with relevant information that facilitates the reconciliation processes between the contracts registered in and the information contained in the members own back-office systems. 1. Messages: Includes all the inbound transactions (new trades, modifications, valuation updates, and terminations) reported. It will be generated on a daily basis. 2. Trade Status: This report will be generated at the end of the day. It will provide the latest status of all trades that have been reported, modified or terminated on the day in which the report is generated. The report will contain all the trade details as recorded in the system. 3. Active Trades: For each account, it includes all trade details of those trades that remain active in the system. All trade/positions details will be listed. It will be sent on a weekly and monthly basis. 15

19 5. IT infrastructure 5.1. Overall system infrastructure OVERALL SYSTEM ARCHITECTURE Trade repositories will be handling massive amounts of data. What is the overall systems architecture of? The major architectural components of the system are subsumed in the following tiers: A first tier where the message ingestion and validation takes place A second tier that stores the accepted messages A third tier that produces and generates responses and reports to the clients and the regulators The solution has been built in a way that can be horizontally scalable in case that the processing capacity needs to be increased Back-up capabilities BACK-UP CAPABILITIES What kind of back up capabilities exist? At, there are currently two data centers running at the same time. s Business Continuity Plan ensures that in the event of a severe production failure, an alternative data center will be running. Therefore: There will be no switching of external communication lines as we have a communication network that is identical to that of the primary center There will be no information loss as with a remote synchronous copy of all data available at the backup center, the integrity of all our information is guaranteed. In the event of a disaster, we do not need to perform tasks of data recovery and process resynchronisation This plan is tested at least every six months, and in the event of significant changes to either the hardware or software How are the backup capabilities tested? In the event of a contingency has in place processes and procedures compliant with CPISS- IOSCO standards for financial market infrastructures. It therefore benefits from: Maximum back-up quality standards Availability of two redundant locations with data centers and offices, and synchronous data replication ensuring full Integrity of back-up data The Web Access Internet access benefits from with high capacity bandwidth and complete redundancy Testing every 6 months 5.3. New software implementation process NEW SOFTWARE IMPLEMENTATION PROCESS How are new software releases tested? Implemented? What is lead-time for clients? Currently, there are 3 environments which exist in our system: Internal test environment User Acceptance Test environment the complete version of the test environment is available since 7 th April 2017 Production live environment The production environment will be ready in October 2017, which will be a replicate from the UAT Environment. 16

20 5.4. Unauthorized access protection UNAUTHORIZED ACCESS PROTECTION How is a client s data protected from unauthorized access? Client data and applications within are protected by coherent security architecture. This architecture has been designed to meet the specific needs of and combines a number of components in order to ensure defence in depth. The major components of this architecture are as follows: perimeter defence components (firewalls and network intrusion detection systems), cryptographic protocols on exposed network segments, multi-tiered framework for handling viruses and malicious code, access control software, scanning software for detecting vulnerability, standard secure configurations for all major native operating systems, use of database security mechanisms, such as password protected roles, to prevent access to data from unauthorised individuals or applications; centralized logging and event management, etc. Processes are in place, which ensure that access to client data is restricted to authorized user only based on least privilege principle. Please advise how the TR logs all administration access and updates on the system (e.g. user logon, failed logon attempts, data record amendments fed to TR, reset of connection sequence numbers) with details including who made the change, at what time the change was received and what the changed data was before the change. Access is controlled, monitored and stored in a log in a detailed way by the IT department. 17

21 6. Data protection 6.1. Data collection, retention and publication DATA COLLECTION AND USAGE What is the degree of data protection? is subject to the data protection laws and regulations of the EU and Luxembourg. These laws and regulations are deemed equivalent by the Swiss Confederation and are guarantying sufficient level of data protection according to Swiss law. Data will be stored in a secured environment that is isolated from the other services offered by. To what extend does collect and transfer data? In terms of data collection, will strictly apply Art. 104 and 105 FMIA/FINFRAG while carrying on its mandate of reporting pursuant to FMIA/FINFRAG. Indeed, the data collected from a Swiss Member is limited to the data listed in the Annex 2 of the Financial Market Infrastructure Ordinance, (the Registered Data ). In addition, collects pursuant to Paragraph 11.2 of the General Terms and Conditions certain personal data while opening and managing the Member accounts. undertakes to inform the Swiss Member if additional personal data is collected. Concerning the data usage and transfer, undertakes not to transfer Registered Data to any third party, except if required by law or authorised by the Member or with its Affiliates according to the paragraph 11.5 of the General Terms and Conditions. In this respect, the Member expressly authorises to transfer the Personal Data and the Registered Data within the group of companies to which belongs and the Affiliates that may offer any adequate level of protection, for the purpose of the provision of the services. For avoidance of doubt, no information on the beneficial owner will be collected and/or transmitted to any third party, except if required by Swiss law, or by any court order. PUBLICATION AND RETENTION OF REGISTERED DATA To what extent is committed to publish and store registered data? undertakes to regularly publish the open positions, the transaction volumes and the values according to the classes of derivatives in aggregated and anonymous form as required by Swiss law. Concerning the data retention, is committed to keep any record relating to all the Personal and Registered Data for a period of 10 years from the termination, cancellation or expiry of the relevant Derivative Contracts according to Article 75 FMIA/FINFRAG Data access for authorities and third parties ACCESS FOR AUTHORITIES SWISS AND FOREIGN To which authorities will the data access be granted? Access to data will only be granted to authorities defined under FinfraG regulation (Article 77 FMIA) required to perform their supervisory tasks. Swiss authorities: grants to the relevant Swiss authorities free access to the Registered Data to the extent required by Article 77 FMIA/FINFRAG. FINMA SNB (i.e. Swiss National Bank) Other Swiss financial market supervisory authorities The Federal Electricity Commission (i.e.: ElCom) Foreign authorities: grants foreign financial markets supervisory authorities free access to the Registered Data they require to perform their tasks provided that the foreign supervisory authority complies with the data protection s requirements set forth in Article 78 FMIA/FINFRAG. Therefore, access to data is permitted if certain conditions as set by FINMA are fulfilled and will be granted upon request and approval by FINMA. 18

22 How is data provided to the regulators? allows the relevant authorities to access the relevant data through a secured SFTP connexion. Those reports will be sent automatically on a daily basis. ACCESS FOR MEMBERS AND THIRD PARTIES To what extent do members and third parties have access to reported data? The members have the right to access their own registered data without restriction for the most current states of all open and historic transactions. However, undertakes not to transfer data to any third party, except if required by law or authorised by the member or with its Affiliates according to the paragraph 11.5 of the General Terms and Conditions. Following Article 79 FMIA/FinfraG, may transmit registered data to third parties in aggregated and anonymised form Data security DATA SECURITY PROTOCOLS, ENCRYPTION, ETC. What kind of security protocols are in place for data access? SSL encryption Client certificates Secure FTP 19

23 7. Legal and Compliance 7.1. Legal framework LEGAL DOCUMENTATION AND FRAMEWORK What is s legal framework and documentation? has a well-founded, transparent and enforceable legal basis for each aspect of its activities. As a trade repository, is duly organised and validly existing under the laws of the Grand Duchy of Luxembourg and conducts its business in compliance with all applicable laws, decrees, regulations and constitutive documents which are applicable to it, including in particular the provisions of FINFRAG containing any FINMA guidelines issued pursuant to such Regulation. s Relationship Managers will provide you all the legal documentation by upon request. Below the detailed legal documentation required for becoming a client at : Contracts depending on your reporting profile(s) (Reporting Participant, Reporting Third Party, Non-Reporting Entity) Appendices (Application forms, General Terms and Conditions ) FINFRAG Supplementary Terms for Swiss Members 7.2. Proximity to the regulators PROXIMITY TO THE REGULATORS How and the regulators are collaborating? The institutional management team works closely with regulators and on a regular basis. In addition to that, a Swiss lawyer s team provides support to in the provision of FinfraG reporting services Compliance structure S COMPLIANCE TEAM What is the internal compliance structure? benefits from a highly experienced and independent compliance function that implements strategies enhancing regulatory compliance and reducing risk exposure. Our compliance team is dedicated to optimize s compliance framework on a full time basis. In addition, our Chief Compliance Officer directly reports to Board of Directors. 20

24 8. s service support 8.1. s client services support team EXPERTISE OF S CLIENT SERVICES SUPPORT TEAM What is the expertise of s client services support team? s client support team provides a multilingual technical assistance to clients and prospects who request specific support related to the UAT and production environment. SCHEDULES AND MULTI-LINGUAL SUPPORT OF S CLIENT SERVICES SUPPORT TEAM What is the extent of languages and schedules covered by s client services support team? 's client support team is located in Madrid and available every working day, as per TARGET calendar, from 08:00 until 18:30 pm CET/CEST, both by telephone, , or by , finfragsupport@regis-tr.com. 's helpdesk team speaks English, Spanish and Italian. The Test/UAT system is available for communicating trades between 08:30 am and 18:30 pm CET/CEST on working days according to the target calendar. In the Production environment, formal open schedule is stated from 08:00 am to 23:00 pm CET/CEST on working days according to the target calendar. Nevertheless, processing availability is even wider and transactions may be reported between 03:00 am and 23:00 pm, distributed as follows: Processing times: 3:00 am - 08:00 am: hourly batch processes. Response messages will be sent after each of the batches 8:00 am - 23:00 pm: real time processing and on-line queries as well as help desk coverage. Response messages will be delivered in 5-minute batches Non-processing times: 23:00 pm - 1:00 am: closing procedures of the system (end of day process) 01:00 am - 3:00 am: maintenance hours 8.2. s Relationship Managers EXPERTISE OF S RELATIONSHIP MANAGERS What is the expertise of s Relationship Managers There are currently 20 Relationship Managers who are available to support clients and prospects who request any kind of support such as on-boarding procedure, clarifications on FinfraG regulation, support for the test environment, fees schedule, technical assistance and documentation. SCHEDULES AND MULTI-LINGUAL SUPPORT OF S RELATIONSHIP MANAGERS What is the extent of languages and schedules covered by s Relationship Managers? 's Relationship Management Department is located throughout Europe and covers the following languages: French, German, Italian, English, Luxembourgish, Dutch, Spanish, Portuguese, Russian, Polish and Slovenian. Relationship Managers are available from 8:30am to 6:00pm. 21

25 Onboarding support and experience ONBOARDING PROCEDURE What are the steps in onboarding procedure? If you are interested in becoming a client at, the first step is to contact us by sending an to our dedicated FinfraG onboarding team (finfrag-onboarding@regis-tr.com) or to your existing Relationship Manager. Your contact person will provide you an UAT Environment form via as well as the following documentation: legal documents, fees schedule and the General Terms and Conditions. Once the form is filled out, a request for an account creation in the UAT Environment will be set up. You will receive your credentials via (user name and password) to access the UAT Environment. All the legal and technical documentation is also available via the UAT Environment. In order to finalize the onboarding procedure, you will have to fill out and sign the required contractual documentation (contracts, appendices) and to submit them with the KYC documents to your responsible Relationship Manager. Your respective Relationship Manager will proceed with your account opening as soon as they receive the signed and valid documentation and you will become officially a client at and you will be able to report your trades through the Production Environment Dedicated private user area WEBSITE PRIVATE AREA AND TECHNICAL DOCUMENTATION What is the technical information accessible on the website? s FinfraG private user area displays a significant number of technical information for market participants. Below an overview of the technical information available: User Guides: Access to all the necessary documentation Handbooks: Technical requirements to allow trade reporting o FinfraG Connectivity Handbook o FinfraG SFTP Connection Handbook o FinfraG Web Service Connection Handbook Schemas: Updated XML Schemas Legal Framework: FinfraG General Terms and Conditions and Agreements 8.5. Events and network information CLIENT WORKSHOPS AND WORKING GROUPS What are the coming client workshops? regularly performs regular client working groups face to face in your location, where we provide technical expertise and updates on the regulatory reporting landscape. We already participated in several working groups in different European cities. is currently organizing an event for FinfraG reporting that will take place in Zurich. It will be an opportunity for you to ask questions to our experts and learn more about the specificities of reporting solution. All the upcoming events related on FinfraG will be published on website and shared on the social media. NETWORK INFORMATION CLIENT NOTIFICATIONS, WEBSITE, SOCIAL MEDIA Is active online and on social networks? is active online as well as on social media. s website includes all the latest news and views on industry topics in the Newsroom. This section also includes the upcoming events and interesting press articles. In addition, frequently publishes blog articles and events on LinkedIn, but also public data, articles and event on Twitter. 22

26 9. Tariff 9.1. Pricing structure PRICING STRUCTURE What are the main principles and fees categories? s fee schedule includes several fees categories: 1. Membership fees A membership fee is charged for every master account on a monthly basis. Non Reporting Entities are charged membership fee on an annual basis. When a Reporting Participant also acts as an Internal Third Party (for other group entities), the membership fee is not charged to the Internal Third Party account. 2. Reporting fees The communication of a trade to is subject to a reporting fee. The reporting fee is applied for each Unique Transaction Identifier (UTI) reported via a Reported Trade Message (XT), be it Report Type N or X, and with Report Level Transaction (T). The reporting fee is applied only once. All life cycle events including modifications and valuation, as well as termination messages are free of charge. The reporting fee will vary depending on the number of New Trades reported per calendar year, as described in the following sections. A trade communicated and cancelled on the same day with action type error will not incur a fee. Report Level Position (P) messages will not trigger a Reporting fee. 3. Maintenance fees Maintenance fees are charged on a monthly basis per open position in the given month and clients are charged at the end of each calendar month for all positions open at any time during the relevant month. Open positions are considered those reported via a Reported Trade Message (XT) with Report Type New (N), be it Report Level Transaction (T) or Position (P), that remain active in the system. Matured trades reported via Reported Trade Message (XT) with Report Type New (N) will trigger a maintenance fee for the first month. New Trades that are cancelled on the reporting date with Report Type Cancellation (C) will not trigger a maintenance fee. 4. Special services Special services (requiring ad-hoc dedication of staff) will be charged at EUR 143 per hour. 5. Fee cap Reporting Participants, Internal Third Parties or family groups will be charged no more than EUR 500,000 per calendar year (excluding VAT). 6. Family group Family groups commonly include the parent company together with all other affiliates that are more than 50% owned and directly or indirectly controlled by the parent. Family groups could also include a structure comparable to a qualifying family group in their own country. Such structures will need to be reviewed and approved by on a case by case basis. The activity of a family group identified with a family code within FinfraG reporting services, will be taken into account with regard to the EUR 500,000 cap and the applicable reporting fee. Reporting Participants, Internal Third Parties and Non-Reporting Entities may belong to the same family group. 23

27 Below our Fee Schedule summary: Reporting Participant/ Internal Third Party External Third Party Non Reporting Entity Membership fee EUR 350/month EUR 350/month N/A Reporting fee [0-400 trades] each month EUR 0 EUR 0 N/A [ 401-1,000 trades] EUR 2.50 EUR 3.00 N/A [ 1,001-5,000 trades] EUR 1.00 EUR 1.00 N/A [ 5,001-40,000 trades] EUR 0.12 EUR 0.15 N/A [ 40, ,000 trades] EUR 0.04 EUR 0.06 N/A [ 200,001-5,000,000 trades] EUR EUR N/A [> 5,000,000 trades] EUR EUR N/A Maintenance fee [0-50,000 positions] EUR EUR EUR 1200 [> 50,000 positions] EUR EUR / year Registration fee N/A N/A EUR 500 What are the terms of payments? Clients are invoiced on a monthly basis - except Non Reporting Entities that are charged on a yearly basis. will issue an itemized invoice no later than the 6th day of the month following the invoice period. Payment will take place in accordance with Regulation (EU) n 260/2012 establishing technical and business requirements for credit transfers and direct debits in Euro. Clients can pay their invoice using SEPA Direct Debit. All fees will be calculated, invoiced and charged in Euros. The fees are quoted net of Value Added Tax (VAT) and, for Luxembourg domiciled entities, charged with the Luxembourgish VAT applicable to financial services. BASIS FOR THE FEE SCHEDULE What is the basis for s fee schedule? s fee schedule is transparent, unbundled and non-discriminatory. It is a cost-related tariff and, due to s scalability, is highly competitive for clients of all sizes. The Relationship Management team would be happy to provide you with a pricing simulation or comparison. 24

28 10. Next steps for becoming a client at 1 Contact to receive support and documentation regarding the on boarding procedure at finfragonboarding@registr.com 2 Send back the filled form and access the free UAT Environment with no commitment 3 Access the technical documentation and test the reporting of trades through the UAT Environment 4 Fill out, sign and send back all the contractual and KYC documents to your Relationship Manager 5 Receive your credentials and access the Production Environment and start to report trades 25

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30 Disclaimer "This Request for Information is for general information and marketing purposes only. The information contained herein is not intended to provide professional legal advice and should not be relied upon in that regard. Readers should seek appropriate professional advice where necessary before taking any action based on the information contained in this document., S.A. makes no guarantees, representations or warranties and accepts no responsibility or liability as to the accuracy or completeness of the information, and under no circumstances will it be liable for any loss or damage caused by reliance on any opinion, advice or statement made in this document. Information in this document is subject to change without notice." 5

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