Trésorier/Treasurer magazine - N°84 - Jan/Feb/Mar 2014 - (Page 8)

INTERVIEW Interview with Martin Sadleder, Founder of Treamo Business Consulting based in Vienna. - In your view what are the key challenges for corporate treasurers with the EMIR regulation? LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE - N°84 - JAN / FEV / MAR 2014 First of all, EMIR stipulates some definitely useful requirements especially in terms of risk mitigation. With or without EMIR, every corporate dealing derivative instruments should be compliant anyway. 8 The key challenges of EMIR are mostly related to the reporting obligation and to two main aspects. First of all, EMIR requires a lot more information (in terms of classification of the derivative or the counterparties), secondly the standards that have been defined for the exchange of messages with Trade Repositories go far beyond the technical standards for just sending spreadsheets back and forth. Furthermore, ESMA has defined the - meanwhile - famous 85 reporting fields, but without having defined validation rules for the reporting of the individual instrument categories. This is somehow interesting because the fields have obviously been defined without performing a serious reality check. By the time that we answer your questions (mid of October 2013) we still have to cope with the fact that also none of the repository candidates offer answers to these questions. It looks like the requirements and their consequences for the economy in general and especially for corporates have been either totally underestimated by the European authorities, or somebody there had been hoping, that somebody else will do the job for them. Either way, this was not a masterpiece in terms of specification and communication at all. Considering the fact that all market participants will have to pay for the reporting to the Trade Repositories, this is just very little service. Furthermore there will be additional costs due to modifications or updates of existing systems, etc. The different current regulations EMIR or ESMA require treasurers new constraints, there are not easy to implement, especially in terms of reporting or compliance. In recent months, Martin Sadleder, Treamo, has been intensively involved with EMIR and is widely regarded as one of the leading European consultancy firms in this area. - What is EMIRate offering as solution for ESMA reporting? Once we had understood what ESMA expects from corporates and what Trade Repository candidates had been offering as means for the reporting itself, we decided that corporates deserve something more useful and helpful, especially with regards to usability and automation. We also saw that neither banks nor vendors of treasury systems showed a noticeable interest in extending their services and offerings with regards to EMIR. To come back to the question - EMIRate is a Cloud-based Software-as-a-Service solution. It is of course software, but more importantly a service in the best sense. It supports corporate treasurers by picking up data from source systems like TMSs or spreadsheets, by validating the data and by sending it to the Trade Repository. The software also returns all repository messages waiting for the individual client which include status messages as well as reports indicating the reconciliation status of each and every single derivative. On top, EMIRate provides all the necessary data for reconciliation purposes as well as the calculation of clearing thresholds at the press of a button. It has a direct link to REGIS-TR with which Treamo has a partnership with. We picked REGIS-TR because they were the first offering a test environment and at least for us seemed to be ahead of other providers and also interested in supporting corporates. - Why corporates should pass via your software rather than directly reporting to a Trade Repository (TR)? First of all, we invested a lot of time and effort in usability and automation and we seem to have achieved our goals in time, but secondly we are, as mentioned before, not just a software but a service provider, taking into account the specific needs of corporates. We, for example, have defined and will - once all validation rules are known - define more instrument specific forms that will allow Martin Sadleder Martin Sadleder is managing director of Treamo Business Consulting, a globally active consultancy firm specializing in treasury management and the development of corresponding software tools. Treamo is a partner of REGIS-TR, one of the future Trade Repositories.

Table des matières de la publication Trésorier/Treasurer magazine - N°84 - Jan/Feb/Mar 2014

INTERVIEW Martin Sadleder- Treamo Business Consulting

Trésorier/Treasurer magazine - N°84 - Jan/Feb/Mar 2014