EMIR Technical Challenges Luxembourg, 20 th November 2014

EMIR Technical Challenges

Luxembourg, 20th November 2014

Market Research Findings

Over 100 organisations found difficulties with...

Central Repository

Valuation Tools

Margining Tools

TR Reporting Maintenance

Concern over the Cost of Collateral

2

Central Repository

All your derivatives in one Data Warehouse

Component-based approach

Internal Reporting

3

Valuation Tools

Lack of readily-available derivative pricing tools

Pricing reconciliation

4

Margining Tool

Tools not adequate to the increase of margining frequency

Calculation of initial margin and variation margin

Increasingly time consuming task

5

TR Reporting Maintenance

Cost of managing the reporting schema evolution

Regulatory reports uncertainty

6

Concerns on Cost of Collateral

7

Cost of not selecting the most efficient collateral to pledge

Higher transactional cost

Target IT Architecture

8

INPUT SOURCES Securities Pledged Securities Inventory Static Data Trades Exposures

Central Repository

OPTIMISATION ENGINEPledge suggestions &

End-of-day reallocation

BUSINESS LOGIC/RULES CSA, Concentration MTA, CTD Optimisation algorithms Substitution

PRE-DEAL CHECK Liquidity Sufficiency Pre-trade margining

MARGINING

Dashboards Margin Call Notices Initial/Variation Margin Portfolio Reconciliation Substitution

Front End

Margin Calls

Worry-free serviced architecture

VALUATION Independent Valuation Margin Replication

TRADE REPOSITORY Up-to-date reporting

schema

Questions & Answers

For any enquiry please contact

David Cassonnet at +33 665 215 579 or via email dca@quartetfs.com Domenico Buonamico at +32 487 546 447 or via e-mail to domenico@nobusoft.net

More information on Nobusoft and on Collateral Suite can be found at www.nobusoft.net More information on Quartet FS and on Active Pivot can be found at www.quartetfs.com

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