Temenos Transact
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Introduction to MIFID

The Treasury applications (Foreign Exchange, Non-Deliverable Forward, Forward Rate Agreements, Swaps and Derivatives) have fields that allow to capture data for Markets in Financial Instruments Directive (MIFID) regulatory reporting. The OC module (OTC Clearing) acting as the framework to:

  • Collate all the reporting data required in database files (defined in TX.TXN.BASE.PARMS)
  • Generate reports from the client through Data Formatting Engine (DFE)

The existing functionality (available fields) is enhanced with new fields, which helps Treasury applications to store MiFID II reportable information.

Configuring MIFID

The user needs to configure the following to enable reporting in Markets in Financial Instruments Directive (MIFID) II regulation:

Installing OC Product

To install OC Module in Temenos Transact, the user needs to ensure the following:

  • OC product is added to System parameter File (SPF).
  • Company records have the OC application.

Setting Up Static Parameters

The parameter tables are mandatory to enable the OTC reporting functionality. In the below screenshot, the Reporting Entity field in OC.PARAMETER is mapped to MIFID report.

Creating Database and Mapping Fields

The following records are required to create a database and map the fields:

If the file name of reporting database is OC.MIFID.DATA, then ID of PARMS record needs to have the database name (that is, OC.MIFID.DATA). The user needs to perform the following for field mapping:

1. Enter the required values in the following fields as shown in the screenshot:

  • Txn Base ID.1
  • Field Name.1
  • Field Fmt.1
  • Fld Val Rtn.1
  • Prefix

2. On validation, the application automatically populates the values in field names 2, 3, 4.

The user needs to create multi-values to define values for more field names.
Field Name Format Length
REPORT.STATUS IN2A 50L
TRAN.REF.NUMBER IN2A 50L
VENUE.UTI IN2A 50L
EXEC.ENTITY.ID IN2A 50L
INV.FIRM IN2A 50L
REPORTING.ENTITY IN2A 50L
BUYER.ID IN2A 50L
BUYER.COUNTRY IN2A 50L
BUYER.NAME1 IN2A 50L
BUYER.NAME2 IN2A 50L
BUYER.DOB IN2A 50L
BUYER.DECISION.MKR IN2A 50L
BUYER.DEC.MKR.NAME1 IN2A 50L
BUYER.DEC.MKR.NAME2 IN2A 50L
BUYER.DEC.MKR.DOB IN2A 50L
SELLER.ID IN2A 50L
SELLER.COUNTRY IN2A 50L
SELLER.NAME1 IN2A 50L
SELLER.NAME2 IN2A 50L
SELLER.DOB IN2A 50L
SELLER.DECISION.MKR IN2A 50L
SELLER.DEC.MKR.NAME1 IN2A 50L
SELLER.DEC.MKR.NAME2 IN2A 50L
SELLER.DEC.MKR.DOB IN2A 50L
TRANSM.ORDR IN2A 50L
DATE.TIME IN2A 50L
TRADING.CAPACITY IN2A 50L
QUANTITY IN2A 50L
QUANTITY.CCY IN2A 50L
PRICE IN2A 50L
PRICE.CCY IN2A 50L
EXEC.VENUE IN2A 50L
BRANCH.CO IN2A 50L
UPFRONT.PAYM IN2A 50L
UPFRONT.PAYM.CCY IN2A 50L
COMPLEX.TRADE.ID IN2A 50L
ISIN IN2A 50L
INSTRUMENT.NAME IN2A 50L
UNIQUE.PROD.ID IN2A 50L
CURRENCY1 IN2A 50L
CURRENCY2 IN2A 50L
PRICE.MULTIPLIER IN2A 50L
UNIQUE.UND.PROD.ID IN2A 50L
UNDERLYING.INDEX.NAME IN2A 50L
UNDERLYING.TERM IN2A 50L
OPTION.TYPE IN2A 50L
STRIKE.PRICE IN2A 50L
STRIKE.PRICE.CCY IN2A 50L
OPTION.STYLE IN2A 50L
EXPIRY.DATE IN2A 50L
DELIVERY.TYPE IN2A 50L
INV.DECISION.MKR.ID IN2A 50L
INV.DEC.MKR.CO.CODE IN2A 50L
MIFID.EXEC.ID IN2A 50L
MIFID.EXEC.CO.CODE IN2A 50L
WAIVER IN2A 50L
OTC.PRATE.IND IN2A 50L
MIFID.COMMODITY.IND IN2A 50L
SFTR.INDICATOR IN2A 50L

3. Define all the fields required in database with the field format and field validation routine.

4. Add the following list of fields in the TX.TXN.BASE.PARMS.

5. On authorisation of TX.TXN.BASE.PARMS record, it creates standard selection record (automatically) and relevant files.

Once the record is authorised, the user cannot:
  • Remove the field added in the database
  • Add new fields in between existing fields (but can add it at the end)

This application enables the user to map the fields. The ID of the record needs to be in the following format: APPLICATION*OC.MIFID.DATA.

The following are sample record IDs:
  • FRA.DEAL*OC.MIFID.DATA
  • ND.DEAL*OC.MIFID.DATA
  • SWAP*OC.MIFID.DATA
  • DX.TRADE*OC.MIFID.DATA
  • FOREX*OC.MIFID.DATA

Although, transaction reporting database (OC.MIFID.DATA) is the same for all OTC applications, the user have to define the mapping record for every OTC application that needs to be reported (as required). The OC.GEN.MIFID.UNIQUE.ID routine is attached to the ID field, which generates a unique ID.

This unique ID is in the transaction reference format, suffixed with unique time.

The following are the types of field mapping:

  • Linear Mapping
  • Routine Mapping

The user can map the fields in OC.MIFID.DATA to the fields in Treasury applications (such as FX, ND.DEAL, FRA, DX.TRADE and SWAP). The below screenshot shows the sample list of fields that can be mapped directly from the application template (ND.DEAL). According to MIFID requirement, the following fields are mapped:

  • Report Status field of OC.MIFID.DATA is mapped to MIFID Report Status field of ND.DEAL
  • Tran Ref Number field of OC.MIFID.DATA is mapped to Uni Tran ID field of ND.DEAL

The user can manipulate field values (based on the fields in the application) by attaching a routine to return the field values that needs to be populated.

The following are the list of field mapping routines released under core:

LINEAR.MAPPING (fields are taken from respective application)
OC.MIFID.DATA Field NDF FRA SWAP DX.TRADE FOREX
REPORT.STATUS MIFID.REPORT.STATUS MIFID.REPORT.STATUS MIFID.REPORT.STATUS MIFID.REPORT.STATUS MIFID.REPORT.STATUS
TRAN.REF.NUMBER UNI.TRAN.ID UNI.TRAN.ID UNI.TRAN.ID UNI.TRAN.ID UNI.TRAN.ID
VENUE.UTI VENUE.UTI VENUE.UTI VENUE.UTI VENUE.UTI VENUE.UTI
TRANSM.ORDR TRANSM.ORDR TRANSM.ORDR TRANSM.ORDR TRANSM.ORDR TRANSM.ORDR
DATE.TIME EXEC.TIME.STAMP EXEC.TIME.STAMP EXEC.TIME.STAMP EXEC.TIME.STAMP EXEC.TIME.STAMP
TRADING.CAPACITY TRADING.CAPACITY TRADING.CAPACITY TRADING.CAPACITY TRADING.CAPACITY TRADING.CAPACITY
QUANTITY DEAL.AMOUNT FRA.AMOUNT LB.PRINCIPAL ROUTINE.MAPPING AMOUNT.BOUGHT
QUANTITY.CCY DEAL.CURRENCY FRA.CURRENCY LB.CURRENCY ROUTINE.MAPPING CURRENCY.BOUGHT
PRICE NOTIONAL.RATE INTEREST.RATE ROUTINE MAPPING PRICE.TRADED ROUTINE MAPPING
PRICE.CCY NA NA NA CONTRACT.CCY CURRENCY.SOLD
EXEC.VENUE EXEC.VENUE EXEC.VENUE EXEC.VENUE EXEC.VENUE EXEC.VENUE
UPFRONT.PAYM NA NA NA ROUTINE.MAPPING NA
UPFRONT.PAYM.CCY NA NA NA CONTRACT.CCY NA
COMPLEX.TRADE.ID COMPLEX.TRADE.ID COMPLEX.TRADE.ID COMPLEX.TRADE.ID COMPLEX.TRADE.ID COMPLEX.TRADE.ID
PRICE.MULTIPLIER NA NA NA CONTRACT.SIZE NA
UNIQUE.UND.PROD.ID NA NA NA ROUTINE.MAPPING NA
UNDERLYING.INDEX.NAME NA NA NA ROUTINE.MAPPING NA
UNDERLYING.TERM NA NA NA ROUTINE.MAPPING NA
MIFID.COMMODITY.IND NA NA NA MIFID.COMMODITY.IND NA
STRIKE.PRICE NA NA NA STRIKE.PRICE NA
STRIKE.PRICE.CCY NA NA NA CONTRACT.CCY NA
OPTION.TYPE NA NA NA OPTION.TYPE NA
OPTION.STYLE NA NA NA OPTION.STYLE NA
EXPIRY.DATE NA NA NA ROUTINE.MAPPING NA
WAIVER WAIVER.INDICATOR WAIVER.INDICATOR WAIVER.INDICATOR WAIVER.INDICATOR WAIVER.INDICATOR
OTC.PRATE.IND OTC.PTRADE.IND OTC.PTRADE.IND OTC.PTRADE.IND OTC.PTRADE.IND OTC.PTRADE.IND
SFTR.INDICATOR SFTR.INDICATOR SFTR.INDICATOR SFTR.INDICATOR SFTR.INDICATOR SFTR.INDICATOR
 
ROUTINE.MAPPING (fields are mapped through routines)
OC.MIFID.DATA FieldNDFFRASWAPDX.TRADEFOREX
EXEC.ENTITY.IDOC.UPD.EXEC.ENTITY.IDOC.UPD.EXEC.ENTITY.IDOC.UPD.EXEC.ENTITY.IDOC.UPD.EXEC.ENTITY.IDOC.UPD.EXEC.ENTITY.ID
INV.FIRMOC.UPD.INV.FIRMOC.UPD.INV.FIRMOC.UPD.INV.FIRMOC.UPD.INV.FIRMOC.UPD.INV.FIRM
REPORTING.ENTITY OC.UPD.REP.ENTITYOC.UPD.REP.ENTITYOC.UPD.REP.ENTITYOC.UPD.REP.ENTITYOC.UPD.REP.ENTITY
BUYER.IDOC.UPD.BUY.IDOC.UPD.BUY.IDOC.UPD.BUY.IDOC.UPD.BUY.IDOC.UPD.BUY.ID
BUYER.COUNTRYOC.UPD.BUY.COUNTRYOC.UPD.BUY.COUNTRYOC.UPD.BUY.COUNTRYOC.UPD.BUY.COUNTRYOC.UPD.BUY.COUNTRY
BUYER.NAME1OC.UPD.BUY.NAME1OC.UPD.BUY.NAME1OC.UPD.BUY.NAME1OC.UPD.BUY.NAME1OC.UPD.BUY.NAME1
BUYER.NAME2OC.UPD.BUY.NAME2OC.UPD.BUY.NAME2OC.UPD.BUY.NAME2OC.UPD.BUY.NAME2OC.UPD.BUY.NAME2
BUYER.DOBOC.UPD.BUY.DOBOC.UPD.BUY.DOBOC.UPD.BUY.DOBOC.UPD.BUY.DOBOC.UPD.BUY.DOB
BUYER.DECISION.MKROC.UPD.BUY.DEC.MKROC.UPD.BUY.DEC.MKROC.UPD.BUY.DEC.MKROC.UPD.BUY.DEC.MKROC.UPD.BUY.DEC.MKR
BUYER.DEC.MKR.NAME1OC.UPD.BUY.DEC.MKR.NAME1OC.UPD.BUY.DEC.MKR.NAME1OC.UPD.BUY.DEC.MKR.NAME1OC.UPD.BUY.DEC.MKR.NAME1OC.UPD.BUY.DEC.MKR.NAME1
BUYER.DEC.MKR.NAME2OC.UPD.BUY.DEC.MKR.NAME2OC.UPD.BUY.DEC.MKR.NAME2OC.UPD.BUY.DEC.MKR.NAME2OC.UPD.BUY.DEC.MKR.NAME2OC.UPD.BUY.DEC.MKR.NAME2
BUYER.DEC.MKR.DOBOC.UPD.BUY.DEC.MKR.DOBOC.UPD.BUY.DEC.MKR.DOBOC.UPD.BUY.DEC.MKR.DOBOC.UPD.BUY.DEC.MKR.DOBOC.UPD.BUY.DEC.MKR.DOB
SELLER.IDOC.UPD.SELL.IDOC.UPD.SELL.IDOC.UPD.SELL.IDOC.UPD.SELL.IDOC.UPD.SELL.ID
SELLER.COUNTRYOC.UPD.SELL.COUNTRYOC.UPD.SELL.COUNTRYOC.UPD.SELL.COUNTRYOC.UPD.SELL.COUNTRYOC.UPD.SELL.COUNTRY
SELLER.NAME1OC.UPD.SELL.NAME1OC.UPD.SELL.NAME1OC.UPD.SELL.NAME1OC.UPD.SELL.NAME1OC.UPD.SELL.NAME1
SELLER.NAME2OC.UPD.SELL.NAME2OC.UPD.SELL.NAME2OC.UPD.SELL.NAME2OC.UPD.SELL.NAME2OC.UPD.SELL.NAME2
SELLER.DOBOC.UPD.SELL.DOBOC.UPD.SELL.DOBOC.UPD.SELL.DOBOC.UPD.SELL.DOBOC.UPD.SELL.DOB
SELLER.DECISION.MKROC.UPD.SELL.DEC.MKROC.UPD.SELL.DEC.MKROC.UPD.SELL.DEC.MKROC.UPD.SELL.DEC.MKROC.UPD.SELL.DEC.MKR
SELLER.DEC.MKR.NAME1OC.UPD.SELL.DEC.MKR.NAME1OC.UPD.SELL.DEC.MKR.NAME1OC.UPD.SELL.DEC.MKR.NAME1OC.UPD.SELL.DEC.MKR.NAME1OC.UPD.SELL.DEC.MKR.NAME1
SELLER.DEC.MKR.NAME2OC.UPD.SELL.DEC.MKR.NAME2OC.UPD.SELL.DEC.MKR.NAME2OC.UPD.SELL.DEC.MKR.NAME2OC.UPD.SELL.DEC.MKR.NAME2OC.UPD.SELL.DEC.MKR.NAME2
SELLER.DEC.MKR.DOBOC.UPD.SELL.DEC.MKR.DOBOC.UPD.SELL.DEC.MKR.DOBOC.UPD.SELL.DEC.MKR.DOBOC.UPD.SELL.DEC.MKR.DOBOC.UPD.SELL.DEC.MKR.DOB
PRICELINEAR MAPPINGLINEAR MAPPINGOC.UPD.PRICELINEAR MAPPINGOC.UPD.PRICE
BRANCH.COOC.UPD.BRANC.COOC.UPD.BRANC.COOC.UPD.BRANC.COOC.UPD.BRANC.COOC.UPD.BRANC.CO
UPFRONT.PAYMNANAOC.UPD.UPFRONT.PMTOC.UPD.UPFRONT.PMTNA
ISINOC.UPD.ISNOC.UPD.ISNOC.UPD.ISNOC.UPD.ISNOC.UPD.ISN
INSTRUMENT.NAMEOC.UPD.INSTR.NAMEOC.UPD.INSTR.NAMEOC.UPD.INSTR.NAMEOC.UPD.INSTR.NAMEOC.UPD.INSTR.NAME
UNIQUE.PROD.IDOC.UPD.UNIQUE.PROD.IDOC.UPD.UNIQUE.PROD.IDOC.UPD.UNIQUE.PROD.IDOC.UPD.UNIQUE.PROD.IDOC.UPD.UNIQUE.PROD.ID
CURRENCY1OC.UPD.CCY.1OC.UPD.CCY.1OC.UPD.CCY.1OC.UPD.CCY.1OC.UPD.CCY.1
CURRENCY2OC.UPD.CCY.2NAOC.UPD.CCY.2OC.UPD.CCY.2OC.UPD.CCY.2
UNIQUE.UND.PROD.IDNANANAOC.UPD.UNIQUE.UND.PROD.ID NA
EXPIRY.DATE LINEAR MAPPING LINEAR MAPPING LINEAR MAPPING OC.UPD.EXPIRY.DATE LINEAR MAPPING
DELIVERY.TYPE OC.UPD.DEL.TYPE OC.UPD.DEL.TYPE OC.UPD.DEL.TYPE OC.UPD.DEL.TYPE OC.UPD.DEL.TYPE
INV.DECISION.MKR.ID OC.UPD.INV.DEC.MKR OC.UPD.INV.DEC.MKR OC.UPD.INV.DEC.MKR OC.UPD.INV.DEC.MKR OC.UPD.INV.DEC.MKR
INV.DEC.MKR.CO.CODE OC.UPD.INV.DEC.MKR.COMP OC.UPD.INV.DEC.MKR.COMP OC.UPD.INV.DEC.MKR.COMP OC.UPD.INV.DEC.MKR.COMP OC.UPD.INV.DEC.MKR.COMP
MIFID.EXEC.IDOC.UPD.MIFID.EXEC.IDOC.UPD.MIFID.EXEC.IDOC.UPD.MIFID.EXEC.IDOC.UPD.MIFID.EXEC.IDOC.UPD.MIFID.EXEC.ID
MIFID.EXEC.CO.CODEOC.UPD.MIFID.EXEC.ID.COMPOC.UPD.MIFID.EXEC.ID.COMPOC.UPD.MIFID.EXEC.ID.COMPOC.UPD.MIFID.EXEC.ID.COMPOC.UPD.MIFID.EXEC.ID.COMP
QUANTITY LINEAR MAPPING LINEAR MAPPING LINEAR MAPPINGOC.UPD.QUANTITYLINEAR MAPPING
QUANTITY.CCY LINEAR MAPPING LINEAR MAPPING LINEAR MAPPINGOC.UPD.QUANTITY.CCYLINEAR MAPPING
UNDERLYING.INDEX.NAMENANANAOC.UPD.UNDERLYING.INDEX.NAMENA
UNDERLYING.TERMNANANAOC.UPD.UNDERLYING.TERMNA

A sample TX.TXN.BASE.MAPPING record for Non-Deliverable Forward (NDF) is shown in the below screenshots.

A sample TX.TXN.BASE.MAPPING record for Swaps (SW) is shown in the below screenshots.

A sample TX.TXN.BASE.MAPPING record for Forward Rate Agreements (FRA) is shown in the below screenshots.

A sample TX.TXN.BASE.MAPPING record for Derivatives (DX) is shown in the below screenshots.

A sample TX.TXN.BASE.MAPPING record for Foreign Exchange (FX) is shown in the below screenshots.

This application defines whether the database is for a particular application or needs to be updated. The ID of TX.CONDITION record is the application name. For example, FOREX, ND.DEAL, SWAP, FRA.DEAL, and DX.TRADE. Although, one application allows one TX.CONDITION record, the user can define conditions to update multiple databases.

  • The TX.CONDITION record has conditions to update OC.MIFID.DATA, OC.TRADE.DATA and OC.VAL.COLL.DATA.
  • The decision routines are released under core.

The user can remove the existing set of OC.TRADE.DATA and change it to the fields given in the below screenshot. This allows to generate the following reports to make the changes in OC.TRADE.DATA:

  • Both the reports online
  • Only European Market Infrastructure Regulation (EMIR) or Markets in Financial Instruments Directive (MIFID) report

The following are sample TX.CONDITION records:

Application Screenshot
ND.DEAL
SWAP
FRA.DEAL
DX.TRADE
FOREX

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Published on :
Tuesday, May 28, 2024 5:47:42 PM IST