The European Market Infrastructure Regulation (EMIR) was designed to regulate the OTC derivatives market and requires market participants to report all derivative trades to a trade repository. This European Union regulation introduces new requirements to improve transparency and reduce the counterparty and operational risks associated with the derivatives market. High quality, accurate reference data is crucial to ensuring compliance.
GoldenSource is uniquely capable of managing all of the data required for risk mitigation as well as CCP reporting requirements under EMIR. The GoldenSource EDM platform creates linkages between counterparty reference data and all associated transactional data including details of any underlying products within the derivative.
Using our industry leading financial data model, GoldenSource has the unique ability to validate all reference data attributes related to a derivative instrument as well store the characteristics of the transaction. GoldenSource publishing and API interfaces are then used to extract data for submission to the trade repository. Importantly, it becomes possible to manage derivatives as an extension of a firm’s Security Master file with all the advantages associated with linking derivatives to their underlying securities. Relationships between a particular Counterparty and its Entity hierarchy can be used for exposure management and other risk and regulatory activities.