Europe's regulatory emulation of the United States' Dodd-Frank Act with relation to the reforming of the entire electronic trading landscape is generating a deja vu situation as Europe's 2014 is looking increasingly like North America's 2013.
The implementation of the European Market Infrastructure Regulation (EMIR) across the continent is now requiring technology providers and infrastructure firms to ensure readiness, in keeping with their transatlantic counterparts.
Today, open source software company Gaia Transparence and Numerix LLC have jointly announced a strategic partnership whereby Numerix Analytics will become embedded within Gaia Transparence's Position Builder system for collateral management, margin requirements and the soon-to-be-mandatory credit value adjustment (CVA).
Gaia Transparence provides trading and risk systems, whereas Numerix majors on cross-asset analytics for derivatives valuations as well as Risk Management . By engaging in a partnership, the two firms aim to provide an end to end solution for EMIR, in which users will be able to forecast and manage initial and variation margins.
A secondary contributing factor is the ability to utilize the Numerix CrossAsset library of industry-wide models and methods in order to provide support for trade repository reporting, which is due to become mandatory under EMIR despite some bureaucratic setbacks, in a similar vein to the requirements implemented last year in the United States.
The two companies assert that the ethos behind this is to report and successfully monitor all global positions.
Making a corporate statement today on behalf of Gaia Transparence, the company's CEO, Emmanuel Nusimovici explained: "Numerix is the market leader and key innovator in the field of analytics. We chose Numerix because their cross-asset capabilities and model library are both cutting edge and a recognized benchmark for the market."
"As the target date for trade repository requirements under EMIR is fast approaching, our partnership with Gaia Transparence is especially timely. Our combined solution is quick to implement and Gaia Transparence's open source platform is both easy to integrate and enhance. This user friendly interface also makes it the ideal platform for regulatory reporting," added Steven R. O'Hanlon, CEO and President of Numerix.
As the EMIR regulations are set in place, it is clear that companies charged with the processing of trades in Europe are concentrating on the preperation, and the European governmental authorities are keen to follow the American lead.
With the Far East following suit as Hong Kong and Singapore move ahead with the implementation of swap execution facilities (SEFs) and the establishment of a large number of trade repositories recently, the global structure of oversight in some of the most populous FX markets is becoming increasingly standardized.
