December 13, 2024 • 33 mins
In this special, recorded live at our #REGISTR Annual Client Event at the Madrid Stock Exchange, we interview senior industry leaders about the successes and challenges of 2024, one of the hardest for the derivatives industry as they implemented the far-reaching changes of EMIR Refit, and faced a tsunami of global rewrites. Featuring insights and analysis from:
👤MarÃa Santos, Managing Director, REGIS-TR, SIX
👤Alfonso Alcalá, Chief Operating Officer, REGIS-TR, SIX
👤Silvia Morales, Head Product Management, REGIS-TR, SIX
👤Tim Hartley, Director - EMIR Reporting, Kaizen
👤Felicity Howley, Product Owner Regulatory Reporting, ABN AMRO CLEARING
👤John Kernan, Head, REGIS-TR UK, SIX
👤David Retana, Managing Director, REGIS-TR UK, SIXÂ
Plus, lots of conference banter, behind-the-scenes chat and general buzz from a hugely successful event at the magnificent Palacio de la Bolsa in Madrid. We also hope to close the debate on the famous "Spanish chorizo"... is it a sausage? Bets are open!
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:08):
this podcast is brought to you by register,
which is a member of the sixgroup and features members of
the register team and specialguests expressing their personal
opinions, not the opinions ofregister as an organization.
There is no representation madeas to the accuracy or
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(00:29):
Hello and welcome back to theregistry on roundup podcast, and
we have a very special show foryou.
In fact, we have two shows.
Yes, it's time for our annualtwo-parter from the registry
client event.
The last one, you remember, ofcourse, was recorded live on
location in London, and this one, for me, was even better
(00:51):
because I got to go abroad.
Yes, finally, I got out of thevirtual studio and into the real
world, to the Palacio de laBolsa, the Madrid Stock Exchange
, a magnificent historicalbuilding in the centre of Madrid
, where I caught up with thegreat and the good of the world
of trade repositories, with keyleaders from Registr and with
(01:14):
clients and with everyone whowas having a good time at the
November client event on the26th.
It was, of course, a challengingyear, 2024.
We'll be hearing more aboutthat and how EMEA has been
implemented the biggest changein the world of derivatives
reporting pretty much since itstarted, I think it's fair to
(01:35):
say.
But we're also going to belooking at some of the bigger
issues that are going to beshaping 2025 and beyond.
There's a new administration inthe US which looks like it
could be pretty deregulatory inits approach.
Will that have implications forEurope?
We're also talking about the bigchanges within the EU, with
(01:55):
DORA coming into effect inJanuary and, of course, touching
on some of those regimes whichmay not apply to the trade
repository world right now butwill certainly affect market
participants.
Looking at potential rewritesfor SFTR, for changes to MIFID
and lots of other juicy stuff aswell.
(02:16):
So we begin the day before onthe 25th of November, where I
caught up with the man who wasreally in the hot seat pulling
all of this together and hostingthe day, the new producer of
the show as well.
I'm very glad to introduceManuel Moreno Garcia and I
managed to grab him duringrehearsals to get a view of, you
(02:39):
know, what was coming up andhow things were going up and how
things were going.
Speaker 3 (02:47):
Yeah, I'm so excited to be prepared for the big day
tomorrow.
As you said, we are in a very,really nice place and we are
going to hold a very fantasticevent.
We prepare a really excitingagenda for the whole day
tomorrow, with roundtables, withpresentations and a nice debate
, so let's hope that tomorroweverything will go well.
Speaker 1 (03:08):
Now you look very calm and relaxed.
Your hair is perfect, I've gotto say.
There isn't a hair out of place.
It doesn't look as thoughyou've been running around like
a wild man pulling all thisstuff together.
You and the team seem to bevery, very calm.
You think you're confident thisis going.
The team seem to be very, verycalm.
You think you're confident thisis going to go well.
Speaker 3 (03:28):
Of course.
Of course We've worked reallyhard to make it happen and
everything is under control.
So we have to keep everythingunder control and all the nerves
and all these things that makesyou really nervous you have to
control when you are also on thestage.
So, yeah, everything will gowell for sure, I think
everything is going to go well.
Speaker 1 (03:47):
Okay, right, that's it from the pre-show.
Let's get on with the mainevent.
Manuel moreno garcia there, whois, of course, the show
producer and was mc and did agreat job too.
I'm not just saying thatbecause he's the producer.
He really did do a great jobfronting the show on the 26th.
(04:08):
So let's dive in withrecordings live from the event
and we begin by catching up withvarious senior leaders from
Regis CR to talk about 2024 andEMEA refit and how that
implementation went, not justfor the trade repository, of
(04:28):
course, but for marketparticipants and the industry as
a whole.
Joining me is Maria Santos,who's the Managing Director at
Registrio, who took over theevent to close it today, as well
as being on a panel earlier.
Maria, you've had another hugesuccess.
(04:51):
These client days are great,tell us.
You must feel very proud of theteam.
Speaker 4 (04:54):
I'm so proud of all the clients here joining us and
so happy for the team and soproud also for the team.
Everybody was so participatingand there were so many questions
and and so many diversesubjects.
Um what that?
I think it was a quite a usefuljourney for for all of us and,
(05:16):
as I said, my impression is thatwe really needed to share our
experience during this, thisdifficult, you know um, process
we went through with theimplementation of Refit in EU
and UK and, this being alltogether, sharing our experience
on the authority side, on theclient side, on the trade
(05:38):
repository side and on thecollaborator side, I think it's
been very useful for all of us.
I think the big challenge nowis to have state-of-the-art
tools to get as much advantageas possible of the huge amount
of data that we are all creatingand, you know, to make this
data useful and to make all thiseffort we all went through very
(06:01):
useful to get more informationon how the entities are
performing, about the stabilityof the financial system, etc.
Speaker 1 (06:12):
so I think it's very part the data is is to have the
superpower, but you have also tohave the correct tools and and
and to to elaborate a finalresult as someone who hasn't
been on the show before isAlfonso Alcala, and I managed to
grab him away from a very busylunch reception to ask him how
(06:33):
the technical challenges hadshaken out for the trade
repository over the last year.
Alfonso, I mean, it's been along year, it's been a tough
year, but huge progress has beenmade.
Sum up 2024 for us.
Speaker 5 (06:53):
Yes, it has been a very demanding, challenging year
.
I have shared with all theaudience today and also for your
audience of the podcast.
I would like to share, thankyou, and to communicate to all
the people that are listeningthat, OK, the good message is we
have built a very good platform, not only to cope with the
(07:14):
implementation of the refit, butto be prepared for the future,
and the future is for ourcustomers.
Now, after fulfilling theregulatory obligations, what we
are going to do is to createvalue-added services for the
(07:34):
clients and to make how to say,digestible All the information.
All the data that is collecteddue to the new REFIT
implementation will betransformed into something
digestible.
So transform data intoinformation is our purpose, and
to make life easier for ourclients.
Speaker 1 (07:45):
So, on that front, what's life going to look like
in 2025?
We've had a huge amount of workto do in 2024.
Everyone's hoping things willcalm down.
There'll be a period ofconsolidation, but I guess not
on the chief operation officer'sfront, because you've got DORA
coming in and then there aremultiple regulatory rights
(08:06):
potentially on the cards, withMIFID and SFTR 2.0, the rest of
EMEA 3.0.
I mean, it seems like you'regoing to be pretty busy.
Speaker 5 (08:17):
Always.
You know it's something that issubstantial to be the
operational officer.
So we, okay, obviously we needto monitor the system to adapt
to the requirements, but I amabsolutely confident that now we
have a very powerful tool thatis our current platform.
(08:37):
So, yes, a lot of work to bedone, new regulatory changes,
but we, our role is to work forthe regulation and to make this
regulation easy for our clients.
So the good news is OK, we arenot going to have some street
hard milestone, as we have hadfor refit implementation in EU
(09:00):
and UK, with only five monthsbetween the two implementations,
with the summer in between.
So something is verychallenging.
And the data migration.
So now obviously we need to dowork, we need to consolidate, we
need to create value added, butit's something that we are not
frightened.
Ok, we are pretty sure that wewill do.
(09:22):
Ok, we are pretty sure that wewill do, but in a war, in a
better how to say, in a betterpace.
It's not to rush to take thismilestone.
So, for me, challenging, butmore we observe the next year
with a more positive view.
Speaker 1 (09:38):
Alfonso Alcala, chief Operating Officer of Registriar
.
Thank you.
Speaker 5 (09:42):
Thank you, thank you for all your audience.
Thank you, chief OperatingOfficer of Regicear.
Thank you, thank you.
Thank you for all your audience.
Speaker 1 (09:48):
Thank you.
Okay, well, we're coming to theend of the Well, it's been a
fantastic day and everyone isheading to the airport,
including this lady who I'vestopped.
Please don't miss your flight.
Sylvia Evora, you know her asone of the leads in the tech
team and the lead of productmanagement.
Sylvia, it's great to have youhere.
You've had a long year, butyou've now got a fantastic new
(10:10):
platform.
We heard from Alfonso earlier.
You've now got a product layeron top of that, which is really
state of the art.
Does this mean you finally getto have a holiday?
Absolutely.
Speaker 6 (10:21):
So hopefully we will get the holiday Now we are
starting, so the worst part ofthe year that ended.
So we are now in a much bettersituation.
We are much stable, but we arenot going to stop.
And we are not going to stopbecause we want more.
We want to start looking intodata quality.
We are going to start lookinginto providing better statistics
(10:42):
to our clients.
So it's now the time to stopfocusing on meeting the
requirements and starting tofocus on clients.
Speaker 1 (10:51):
Okay, so 2025, big client focus.
We've heard a lot of talk aboutancillary services and value
adds.
Is there anything in theproduct pipeline you can tell me
about?
That isn't going to.
You know it's going to be alittle scooped for the podcast,
can tell me about.
Speaker 6 (11:06):
That isn't going to.
You know, it's going to be alittle scooped for the podcast.
I mean, the main focus is goingto be how can we improve in
identifying data quality issuesand that we can help identifying
our clients those as well, sothat they can resolve them way
before their NCAs come to themand ask for details.
So we are going to work on thatdirection to identify the
(11:28):
quality issues and help themidentify those so that they are
resolved.
Speaker 1 (11:33):
Silvia Evora.
Thank you so much.
It's great to see you.
Speaker 6 (11:37):
Likewise.
Thank you very much Okay, bye.
Speaker 1 (11:43):
Now, one of the great things about getting out of the
virtual studio and attending alive event is, apart from the
fact that things about gettingout of the virtual studio and
attending a live event is, apartfrom the fact that I finally
changed out of my pajamas andput on some real outside clothes
.
I went and caught up with anold friend of the show, mr Tim
Hartley, director of RegulatoryReporting at Kaizen, and I got
his view on the broader industry.
(12:05):
Take on, amir refit.
We're just coming to the lunchbreak.
That's why you can hear thesubtle strains of jazz in the
background in this magnificentbuilding.
And joining me here is, ofcourse, someone who's basically,
(12:25):
uh, the sort of lodger on theshow.
He's, uh, a guest co-star, uhmany times.
Mr tim harley, joining us fromkaisen.
Tim, it has been the full montythis morning.
We seem to have covered off somany topics, but obviously,
having you here, a genuine dataexpert, tell us I mean, you know
(12:49):
how has Refit gone?
We've had some very honestopinions here about this was
always going to be a massivechallenge for the industry.
Speaker 7 (12:57):
Yeah, there's been a lot, andrew, for firms to get in
up to speed with.
They've done a very good job ofgetting up to speed with the
validation rules, which meanstheir submissions have by and
been successful after a coupleof teeming issues.
That's been a great story.
And the collaboration betweenfirms and the rest of the
industry.
So trade repositories such asRegistr and trade associations
(13:18):
they've all talked together verywell very good working groups
to see what the problems are,what the gray areas are and how
to report under those situations, what the problems are, what
the gray areas are and how toreport under those situations,
and so firms have risen to thatchallenge very, very well.
There's still work to do on aday two level in terms of making
sure that their data is fit forpurpose, but that's fully to be
expected.
With the amount of changes thatcame in for a mere refit, there
(13:41):
would always be a long tail ofthings to remediate and that's
where firms are now.
They've done a good job forsubmissions and they're ready to
look to see how good that datais, how fit for purpose is the
data that they've reported.
Speaker 1 (13:56):
One of the things that seems to have emerged is
the fact that, prior to thego-live for a mere refit, there
was a lot of testing that wasbeing done with synthetic trade
synthetic data.
There was a lot of testing thatwas being done with synthetic
trade, synthetic data, but whatthe process has shown is that
actually, that wasn't really agood approximation for the real
live operational data that isgetting shunted through the
(14:16):
system at massive volumes acrossthe whole of the EU.
Do you think this has changedthe way you think about how
these systems need to be plannedand tested?
Speaker 7 (14:25):
Yeah, testing is tricky for firms.
There's always a limited numberof resources in order to
perform testing at the same timethat you're building the
changes themselves.
And the thing that's tricky,especially for a mere refit, is
you've got to look at testingnot only the type of derivatives
that you execute, but also thelifecycle events that go with
(14:46):
that.
And then couple all of thatwith the fact that there's no
substitute for real live data,and so the synthetic data is
useful to a point, but reallythe real go live data is where
all of the different edge casesand everything like that come
out of the woodwork and test howgood your implementation was.
(15:07):
But that's hard for firms.
It's hard to bring all thosetogether in synthetic data, and
so it still has a purpose, butisn't as good as live, actual
derivatives themselves.
Speaker 1 (15:19):
Now we've gone from 140 fields up to 207, something
like.
I know you'll know the exactnumber, but has this really
enhanced the data quality?
Are we now seeing thisinformation getting piped
through to the ECB?
Is it hitting monetary policycommittees?
Is it making a difference tosystemic risk in Europe
(15:40):
stabilizing at a time, of course, when we might see regulatory
rollback in the States?
We could see a lot of changesand our sort of journey towards
data harmonization seems to besort of on a bit of a knife edge
at the minute.
Speaker 7 (15:55):
Yeah, so the fields went up to 204, including the
execution agent.
A lot of the new fields werearound commodities reporting,
and so it's useful to give thatgranularity.
The real increase in the dataquality is around the change to
existing fields andclarification for those existing
fields, whether that be thevalidation rules or in the
(16:15):
guidelines that the reg laceshave released, and that's really
, really useful.
And so, for example, thechanges that have gone into the
validation rules counter some ofthe items that were in the
previous ESMA Q&A where eitherthere was mistakes or confusion
from the regulator or somethinglike that, and so they all point
towards the right level of dataquality or increasing data
(16:38):
quality as those validationrules get stricter, and so
that's the right way forward forfirms.
Speaker 1 (16:44):
Now a couple of completely off-topic questions
for you.
Number one uh kaizen, have uhreceived, uh, fantastic uh
investment now, um, is thischanging your outlook?
Are you going to be scaling upyour department, launching new
products?
I mean, what's on the hartleydesk right now?
Speaker 7 (17:02):
yeah, lots for that.
So we're really excited aboutuh working with our new
investors.
Lots for me and for the rest ofthe firm to do.
We are launching differentproducts in different regions
that we currently do now, aswell as increasing the clients
that we have for existingproducts across our ReportShield
range.
But, yeah, it's a lot.
(17:23):
So absolutely scaling up.
There's a lot to do there, butalso scaling up in the right way
.
So we not only increased thenumber of um uh people employed
at kaizen um, but also using ourother products, um, such as a
single rule book, to make surethat firms have one source for
regulatory uh resources.
Uh, we make sure that we'reimplementing smart um changes to
(17:44):
so firms can analyze the data.
They can look online at ourportals to make sure any
remediation is clear and howmany trades it impacts.
Speaker 1 (17:54):
So it's scaling up, but scaling up in the right way,
and thank you, tim Hartley,director of Regulatory Reporting
at Kaizen, for joining us today.
Speaker 7 (18:00):
Thanks, tim, great.
Thank you Great to be here,andrew.
Speaker 1 (18:04):
Okay now those of you who remember the opening
episode of the season, tim wasgiven a spot quiz on sausages,
which he had no time to preparefor, had no idea it was coming,
and I think he did pretty well.
Anyway, one of the questions weasked was about chorizo, and
this has caused a huge amount ofdebate, if not controversy, as
(18:27):
various people have waded in andsaid that chorizo is not a
sausage and others have saidthey believe it is a sausage,
and this issue will be decidedin this very show, as I asked
our guests for that.
So do make sure you listen tothe end for our chorizo
controversy special Moving on.
Of course, it's important thatyou know.
(18:48):
At events like this, we alsocatch up with other guests to
find out their view of howthings played out, and I want to
introduce Felicity Howley fromABN Amro Clearing, who had her
own take on the challenges thatAmir Refit's caused from the
view of a clearing bank andmarket infrastructure.
(19:11):
How has it been for you?
Do you think that there aresome lessons from the software
industry that could get rolledthrough the financial sector to
try and make it less of a bumpyride next time a big regulation
comes into force, like a mererefit?
Speaker 8 (19:30):
Yeah, I think, if I look kind of within the
organization, so we're at theend of the chain, so we're
getting the data from differentteams and those teams don't
really understand the importanceof some of the fields and,
especially when we have kind ofglitches in systems or things
that we're not receivingexternally or not being
processed properly, they don'tactually realize the impact that
(19:50):
that has on the reporting.
And then quite often we'rereporting T plus one and quite
often we're finding kind of outabout the issues late in the day
and it means that we have tothen try and fix those issues.
And I think, yeah, that's maybewithin the organization is a
bit of a lack of understandingof those people who are working
on those systems.
But, um, yeah, in in terms oflessons learned, um, yeah, we,
(20:15):
we get our information.
So for the additional fields,for refit, we get our
information from the ccps andwe're reliant on them to be able
to actually make changes to oursystems.
And what I saw with Reeford isthe changes that had to be made.
It was actually the team that Icame from, market
Infrastructure.
The changes were huge.
I mean, you're getting I thinkit was about 13 different
(20:37):
specifications.
You have to go through allthose specifications.
No CCP does it in the same way.
Some they'll send you theinformation intraday, some
they'll send the information endof day and you have to try and
figure out OK, how are we goingto get these fields in, how are
we going to report them?
And it puts huge pressure onthe team to deliver that short
term and also puts pressure onus because we have to test, and
(20:59):
we need to test with the volumesthat we're actually doing in
production on a daily basis.
So that's something that weyeah, we struggled with and we
really went into animplementation squeeze with
getting the specs in, analyzingthem, making the changes and
trying to test the data.
And then you see that thequality of the testing, yeah, it
(21:21):
could be much better, and I'dlike to see in the future, amy
or Rieferts, that we get there'ssome agreement made on when the
CCPs have to provide theirspecifications, maybe six to
eight months in advance, ormaybe that they're even actually
already providing the fieldsbefore we have to adhere to the
regulation.
Speaker 1 (21:39):
Now, do you think that there needs to be more
feedback as well from nationalcompetent authorities and from
regulatory supervisory bodiesabout the key areas where the
data needs to improve, where thedata quality needs to be a
sharper focus, so that marketparticipants have got a better
chance of getting it right firsttime?
Speaker 8 (22:01):
I think you know from the event today and the
questions that have been askedduring the panel, but also some
questions that have been askedand discussed here while we've
been having lunch, it's obviousthat you know we could get some
help on that.
There's a lot of people askingI mean, even Roberto got the
question today what fields arethe regulators looking at?
(22:21):
And I think in terms of, if youlook at the AMIA regulation,
why it's there?
I mean we're trying to makesure that we're aware of
counterparty risks.
So the fields that are lookingat valuation amount, notional
amount collateral, I think thoseare the fields that are looking
at valuation amount, notionalamount collateral.
I think those are the fieldsthat are really the important
ones.
Some of them are not part ofthe reconciliation at the moment
(22:43):
, but I think it would be niceif there was some kind of a
report shared with all of theparties to say these are the
fields that are the mostimportant ones.
Speaker 1 (22:55):
And looking forwards 2025,.
Do you get a break now?
Are you going to get a littlechristmas holiday, get to put
your feet up, maybe a spot ofskiing, or are you going to be
in the office with a sandwichfrom, uh, the dispensing machine
, uh, hammering your way througheverything to get ready for
dora and whatever is comingafter that?
Speaker 8 (23:15):
I do get time to have a little Christmas break.
I'm actually going to Ireland,so I get a little bit of a
holiday.
But yeah, I mean, 2024 has been.
It's been a crazy year for allof us.
And you know, there is there'sone month left and just even
though it's only a few weeks, itactually feels like we still
(23:35):
have to deliver a lot in 2024.
2025, yeah, we still want toenhance our systems.
We want to make sure that ourcontrols are all in place, that
we're looking at the dataaccuracy as well.
So we already have a hugeamount of work for 2025.
And, of course, there's all theother things that are going on
as well, and we also want toupgrade our systems as well.
(23:58):
We have lifecycle managementthat needs to be taking place.
But I will be taking asabbatical.
Speaker 1 (24:05):
Fizzi Hallie, thank you so much for joining us and
congratulations on a great panel.
Speaker 8 (24:10):
Yeah, I look forward to the quiz the next time.
Speaker 1 (24:13):
Oh yeah, by the way, is chorizo a sausage?
Now, this wouldn't really be aproper Regisier Roundup show
without a few words from thisman, the man who put the canary
in the wharf, the man who was inDevonshire at Never Square and
also now known as the man who'sin charge of St Mary's Axe.
It is, of course, mr JohnKernan, the CEO of Registrary in
(24:39):
the UK, who's enjoyingsomething of the limelight after
a hugely successful UKimplementation of Amir Refit,
and I managed to drag John intoa side room at the very, very
busy event, uh, so we couldcatch up about uk emir and what
next year is looking like forhim well, it's certainly gone,
(25:02):
um, it's certainly gone a lotmore smoothly than it did in the
european union, which, ofcourse, is only to be expected.
Speaker 9 (25:10):
Really, um, most of our uk clients already have
european union Union reportingobligations and so, you know,
they've worked through a lot ofthe systemic issues in, you know
, with sourcing the data anddata accuracy.
So, yeah, touch wood, there'sstill a few things we need to do
(25:34):
, but rejection rates have beenincredibly low after the first
few days and, touch wood, thingsare going well.
So now our UK clients really,they now need to focus on
upgrading their open trade data.
They have a few more months yetum to complete that and then,
(25:56):
of course, I think in september,uh, there will be um
introduction of addition, uh,reconciliation fields that they
need to focus on.
Speaker 1 (26:06):
So so, yeah, um, pretty successful, I would say
uh, but we certainly can't reston our laurels do you think that
the uk implementation benefitedfrom coming about six months
later, so there was a chance toactually see what real data does
?
Because there's been a fewpeople today who have talked
about this idea that thesynthetic data and the test data
(26:28):
just didn't come in hard enoughor quickly enough to really
replicate what the liveenvironment would be like in the
European implementation of EMEA.
Speaker 9 (26:38):
Yeah, I think that's certainly the case.
Yeah, I mean, you can do tensof thousands of test cases and
you know you still very oftenyou only flush out systemic
issues by actually reporting inproduction.
So I think that's the case.
(26:59):
The other consideration is, ofcourse, by definition, the UK
volumes are lower because it'sone market versus 27 markets, so
there's less complexity in thatregard.
Fewer NCAAs, obviously.
So I think there are a fewdifferent considerations.
Speaker 1 (27:24):
Yeah, Well, one of the really nice things about
this annual event is I get tocatch up with old friends, and
here we have the ManagingDirector of Registry RUK, david
Retana, fresh from his panelhere, busy networking with
clients and doing all the thingsthat an MD has to do, but I've
(27:46):
managed to grab him to ask a fewquestions.
David, since we last spoke,it's been a long 2024.
Were you expecting it to bequite such a big challenge, not
just for the trade repositoriesand market infrastructure, but
for the whole industry?
Speaker 10 (28:02):
Oh, yes, we were expecting that, definitely For
us.
It was explained in the panelsand Alfonso explained it quite
well and Alfonso explained itquite well.
For us it was a doublechallenge because of the
implementation of a brand newtechnology and also
(28:24):
implementation of a so radicalregulatory change with a fixed
deadline.
So we don't have to forget that.
So definitely for the Europeans, it was for sure that it was
going to be a path of pain,let's say, and yeah, definitely
(28:50):
we had to do it.
I would say that on the UK sidethey were smart to say, okay,
let's see what our friends inthe EU perform after the
implementation, and then we willsee after four months.
So definitely, theimplementation in the UK has
(29:12):
been so much smoother incomparison with the turmoil in
the EU.
We were lucky of thatdefinitely.
Now the situation is much morestable on the EU side and we are
happy for that.
And I'm pretty sure I mean inthree months' time In three
(29:50):
months' time probably, we willhave a state-of-the-art system
working perfectly and ready forimproving and ready for
implementing ancillary servicesfor customers.
This is our main objective forthe next season, is our main
objective for the next season.
I think it is imperativebecause after all these years of
pain with constant regulatorychanges, now it is time to
devote time to customers andimplement ancillary services.
(30:14):
So, yeah, very much lookingforward to the next season.
Speaker 1 (30:19):
That's fantastic, David.
Thank you for joining us.
I know you're very busy, so I'mgoing to say goodbye, good luck
, and let's not leave it a yearnext time.
Speaker 10 (30:27):
Thank you very much, Andrew.
Speaker 1 (30:36):
So we need to bring the show to a close, uh, but
before we go, uh, we do need tosettle the question of whether
or not chorizo is a sausage.
Now, in episode one, uh, youmight remember, we started
giving our guests surprisequizzes to see what would happen
, and one of the first peoplecompletely unprepared to get hit
with the quiz bomb was, ofcourse, tim Hartley, director of
(30:59):
Regulatory Reporting at Kaizen,and he was up against John
Graham, whose specialist topicwas Bruce Springsteen.
John did fabulously well.
Well done, john, if you'relistening.
John Graham from the FuturesAssociation, tim had some pretty
controversial questions, one ofwhich was hotly debated
afterwards by the Spanishmembers of the crew, because we
said chorizo was a sausage andchorizo is not a sausage, or is
(31:22):
it?
This is the question we settlenow with the great chorizo
debate.
So, please, as the music playsus out, and I invite all of you
to join us for our very specialpart two show, which will also
have some special Christmasmessages, and don't forget to
join us for our very specialpart two show, which will also
have some special Christmasmessages.
And don't forget to join us onour LinkedIn page, that's
linkedincom.
Slash company, slash register,hyphen TR, where you can find
(31:44):
out more about our event.
You can see all the pictures.
You can find our Flickr gallerywith lots and lots of pics of
all the participants there.
Plus, of course, you cannetwork with everyone that's
been in this show, and morebesides.
And in the meantime, I'm goingto leave you with the great
chorizo debate.
In these days of dataharmonization and improving
quality and reducing rejectionrates, we need to get our
(32:05):
sausages right.
Or do we?
And one final question, which isthere are two sort of hot
debates that have been flyingaround here.
One is is an FX forward, aderivative or not?
(32:29):
There's some confusion aboutthat, depending on where you go
in Europe.
And of course, the other partof that question is is chorizo a
sausage or not?
Because in spain apparently not.
What's your view on these?
Speaker 7 (32:41):
so the fx uh is interesting.
The um, yeah, it depends.
The um national competentauthority, uh for um, of which
is often more than one for eachcountry, still has the deciding
say on what is a derivative, andunder remear it's all
derivatives that be reported.
So, in short, firms that arenot sure would need to check
(33:02):
with their nca whether thatparticular product, such as an
fx forward, is a reportableproduct under remear I.
Is it deemed to be a derivative?
For example, under the fca, fxforwards are reportable whereas
fx spots are not a derivative.
For example, under the fca, fxforwards are reportable whereas
fx spots are not.
On the more thorny topic ofchorizo and sausages, yeah, I,
um, it definitely looks like asausage, it smells like a
(33:25):
sausage and it's great, but myspanish friends tell me it's
absolutely not a sausage and so,but all of those things are
very hard pill to swallow.
So for the time being, sincewe're in Madrid, I'm going to
say it's not a sausage, but itis very enjoyable and thank you
to all our Spanish friends forthat education.
Speaker 6 (33:43):
I don't think so.
Do you think so?
Speaker 1 (33:46):
I couldn't possibly say you know, I have to remain
neutral on this one.
Whatever it is, it's delicious.
Speaker 6 (33:52):
It is delicious.
I thought, so I wouldn't say so, yes.
Speaker 5 (33:59):
Well, it's a kind because, if we understand
sausage, it's something that youhave meat inside and in the how
to say, the piece of thestomach.
Yes, it's sausage.
Speaker 8 (34:11):
I think it is.
I don't know about the Spanishpeople here today.
Speaker 10 (34:16):
Of course not.
I'm Spanish.
It's like rice with things isnot paella, for example.
Of course not.
Speaker 9 (34:24):
It's a sausage and you know now I've said that I'm
going to be in a lot of trouble.
Speaker 1 (34:27):
You are, thank you.
That's Nick Abruz, the formerhead of business development,
now on the run, and, andres,where do you stand on the
chorizo debate?
Speaker 10 (34:39):
I agree with Nick.
To be honest, my bosses are inSpanish, so I'm not going to
lose my job, but I agree withhim.
Speaker 9 (34:48):
Yes, it is a sausage.
Why do you ask?
Speaker 4 (34:52):
I know this is a tricky question and it is not
ask.
Speaker 8 (34:58):
I know this is a tricky question and it is not,
it's a thing on its own, Iwouldn't call it a sausage.
Speaker 10 (35:01):
but if it serves for anything, do not put it on
paella Chorizo.
Yes, well, it depends on whichcountry you are.
In Spain it is a sausage, butif you go to Argentina, I know
it's something different, buthere in Spain it's a sausage.
Speaker 4 (35:17):
Saute it with paprika right.
Speaker 3 (35:21):
Yeah, but is that sausage?
I would believe, yeah, I wouldsay yeah, absolutely 100%.
Speaker 8 (35:27):
I'm always against it .
No, it's 100% fact.
No, it is not a sausage.
Speaker 4 (35:34):
No, it's not, it's not, it's not.
Chorizo is much better than asausage.
Yeah, no, it's not, it's not,it's not.
Chorizo is much better than asausage, and I invite everybody
coming to Spain to taste ourchorizo, which is something so
typical Spanish that doesn'thave a translation.
I think, yeah, no, chorizo.
So repeat, all with me Chorizo.
this podcast is brought to you by register,
which is a member of the sixgroup and features members of
the register team and specialguests expressing their personal
opinions, not the opinions ofregister as an organization.
There is no representation madeas to the accuracy or
completeness of information inthis podcast, and nor should it
be taken as legal tax or anyother professional advice.
(00:29):
Hello and welcome back to theregistry on roundup podcast, and
we have a very special show foryou.
In fact, we have two shows.
Yes, it's time for our annualtwo-parter from the registry
client event.
The last one, you remember, ofcourse, was recorded live on
location in London, and this one, for me, was even better
(00:51):
because I got to go abroad.
Yes, finally, I got out of thevirtual studio and into the real
world, to the Palacio de laBolsa, the Madrid Stock Exchange
, a magnificent historicalbuilding in the centre of Madrid
, where I caught up with thegreat and the good of the world
of trade repositories, with keyleaders from Registr and with
(01:14):
clients and with everyone whowas having a good time at the
November client event on the26th.
It was, of course, a challengingyear, 2024.
We'll be hearing more aboutthat and how EMEA has been
implemented the biggest changein the world of derivatives
reporting pretty much since itstarted, I think it's fair to
(01:35):
say.
But we're also going to belooking at some of the bigger
issues that are going to beshaping 2025 and beyond.
There's a new administration inthe US which looks like it
could be pretty deregulatory inits approach.
Will that have implications forEurope?
We're also talking about the bigchanges within the EU, with
(01:55):
DORA coming into effect inJanuary and, of course, touching
on some of those regimes whichmay not apply to the trade
repository world right now butwill certainly affect market
participants.
Looking at potential rewritesfor SFTR, for changes to MIFID
and lots of other juicy stuff aswell.
(02:16):
So we begin the day before onthe 25th of November, where I
caught up with the man who wasreally in the hot seat pulling
all of this together and hostingthe day, the new producer of
the show as well.
I'm very glad to introduceManuel Moreno Garcia and I
managed to grab him duringrehearsals to get a view of, you
(02:39):
know, what was coming up andhow things were going up and how
things were going.
Speaker 3 (02:47):
Yeah, I'm so excited to be prepared for the big day
tomorrow.
As you said, we are in a very,really nice place and we are
going to hold a very fantasticevent.
We prepare a really excitingagenda for the whole day
tomorrow, with roundtables, withpresentations and a nice debate
, so let's hope that tomorroweverything will go well.
Speaker 1 (03:08):
Now you look very calm and relaxed.
Your hair is perfect, I've gotto say.
There isn't a hair out of place.
It doesn't look as thoughyou've been running around like
a wild man pulling all thisstuff together.
You and the team seem to bevery, very calm.
You think you're confident thisis going.
The team seem to be very, verycalm.
You think you're confident thisis going to go well.
Speaker 3 (03:28):
Of course.
Of course We've worked reallyhard to make it happen and
everything is under control.
So we have to keep everythingunder control and all the nerves
and all these things that makesyou really nervous you have to
control when you are also on thestage.
So, yeah, everything will gowell for sure, I think
everything is going to go well.
Speaker 1 (03:47):
Okay, right, that's it from the pre-show.
Let's get on with the mainevent.
Manuel moreno garcia there, whois, of course, the show
producer and was mc and did agreat job too.
I'm not just saying thatbecause he's the producer.
He really did do a great jobfronting the show on the 26th.
(04:08):
So let's dive in withrecordings live from the event
and we begin by catching up withvarious senior leaders from
Regis CR to talk about 2024 andEMEA refit and how that
implementation went, not justfor the trade repository, of
(04:28):
course, but for marketparticipants and the industry as
a whole.
Joining me is Maria Santos,who's the Managing Director at
Registrio, who took over theevent to close it today, as well
as being on a panel earlier.
Maria, you've had another hugesuccess.
(04:51):
These client days are great,tell us.
You must feel very proud of theteam.
Speaker 4 (04:54):
I'm so proud of all the clients here joining us and
so happy for the team and soproud also for the team.
Everybody was so participatingand there were so many questions
and and so many diversesubjects.
Um what that?
I think it was a quite a usefuljourney for for all of us and,
(05:16):
as I said, my impression is thatwe really needed to share our
experience during this, thisdifficult, you know um, process
we went through with theimplementation of Refit in EU
and UK and, this being alltogether, sharing our experience
on the authority side, on theclient side, on the trade
(05:38):
repository side and on thecollaborator side, I think it's
been very useful for all of us.
I think the big challenge nowis to have state-of-the-art
tools to get as much advantageas possible of the huge amount
of data that we are all creatingand, you know, to make this
data useful and to make all thiseffort we all went through very
(06:01):
useful to get more informationon how the entities are
performing, about the stabilityof the financial system, etc.
Speaker 1 (06:12):
so I think it's very part the data is is to have the
superpower, but you have also tohave the correct tools and and
and to to elaborate a finalresult as someone who hasn't
been on the show before isAlfonso Alcala, and I managed to
grab him away from a very busylunch reception to ask him how
(06:33):
the technical challenges hadshaken out for the trade
repository over the last year.
Alfonso, I mean, it's been along year, it's been a tough
year, but huge progress has beenmade.
Sum up 2024 for us.
Speaker 5 (06:53):
Yes, it has been a very demanding, challenging year
.
I have shared with all theaudience today and also for your
audience of the podcast.
I would like to share, thankyou, and to communicate to all
the people that are listeningthat, OK, the good message is we
have built a very good platform, not only to cope with the
(07:14):
implementation of the refit, butto be prepared for the future,
and the future is for ourcustomers.
Now, after fulfilling theregulatory obligations, what we
are going to do is to createvalue-added services for the
(07:34):
clients and to make how to say,digestible All the information.
All the data that is collecteddue to the new REFIT
implementation will betransformed into something
digestible.
So transform data intoinformation is our purpose, and
to make life easier for ourclients.
Speaker 1 (07:45):
So, on that front, what's life going to look like
in 2025?
We've had a huge amount of workto do in 2024.
Everyone's hoping things willcalm down.
There'll be a period ofconsolidation, but I guess not
on the chief operation officer'sfront, because you've got DORA
coming in and then there aremultiple regulatory rights
(08:06):
potentially on the cards, withMIFID and SFTR 2.0, the rest of
EMEA 3.0.
I mean, it seems like you'regoing to be pretty busy.
Speaker 5 (08:17):
Always.
You know it's something that issubstantial to be the
operational officer.
So we, okay, obviously we needto monitor the system to adapt
to the requirements, but I amabsolutely confident that now we
have a very powerful tool thatis our current platform.
(08:37):
So, yes, a lot of work to bedone, new regulatory changes,
but we, our role is to work forthe regulation and to make this
regulation easy for our clients.
So the good news is OK, we arenot going to have some street
hard milestone, as we have hadfor refit implementation in EU
(09:00):
and UK, with only five monthsbetween the two implementations,
with the summer in between.
So something is verychallenging.
And the data migration.
So now obviously we need to dowork, we need to consolidate, we
need to create value added, butit's something that we are not
frightened.
Ok, we are pretty sure that wewill do.
(09:22):
Ok, we are pretty sure that wewill do, but in a war, in a
better how to say, in a betterpace.
It's not to rush to take thismilestone.
So, for me, challenging, butmore we observe the next year
with a more positive view.
Speaker 1 (09:38):
Alfonso Alcala, chief Operating Officer of Registriar
.
Thank you.
Speaker 5 (09:42):
Thank you, thank you for all your audience.
Thank you, chief OperatingOfficer of Regicear.
Thank you, thank you.
Thank you for all your audience.
Speaker 1 (09:48):
Thank you.
Okay, well, we're coming to theend of the Well, it's been a
fantastic day and everyone isheading to the airport,
including this lady who I'vestopped.
Please don't miss your flight.
Sylvia Evora, you know her asone of the leads in the tech
team and the lead of productmanagement.
Sylvia, it's great to have youhere.
You've had a long year, butyou've now got a fantastic new
(10:10):
platform.
We heard from Alfonso earlier.
You've now got a product layeron top of that, which is really
state of the art.
Does this mean you finally getto have a holiday?
Absolutely.
Speaker 6 (10:21):
So hopefully we will get the holiday Now we are
starting, so the worst part ofthe year that ended.
So we are now in a much bettersituation.
We are much stable, but we arenot going to stop.
And we are not going to stopbecause we want more.
We want to start looking intodata quality.
We are going to start lookinginto providing better statistics
(10:42):
to our clients.
So it's now the time to stopfocusing on meeting the
requirements and starting tofocus on clients.
Speaker 1 (10:51):
Okay, so 2025, big client focus.
We've heard a lot of talk aboutancillary services and value
adds.
Is there anything in theproduct pipeline you can tell me
about?
That isn't going to.
You know it's going to be alittle scooped for the podcast,
can tell me about.
Speaker 6 (11:06):
That isn't going to.
You know, it's going to be alittle scooped for the podcast.
I mean, the main focus is goingto be how can we improve in
identifying data quality issuesand that we can help identifying
our clients those as well, sothat they can resolve them way
before their NCAs come to themand ask for details.
So we are going to work on thatdirection to identify the
(11:28):
quality issues and help themidentify those so that they are
resolved.
Speaker 1 (11:33):
Silvia Evora.
Thank you so much.
It's great to see you.
Speaker 6 (11:37):
Likewise.
Thank you very much Okay, bye.
Speaker 1 (11:43):
Now, one of the great things about getting out of the
virtual studio and attending alive event is, apart from the
fact that things about gettingout of the virtual studio and
attending a live event is, apartfrom the fact that I finally
changed out of my pajamas andput on some real outside clothes
.
I went and caught up with anold friend of the show, mr Tim
Hartley, director of RegulatoryReporting at Kaizen, and I got
his view on the broader industry.
(12:05):
Take on, amir refit.
We're just coming to the lunchbreak.
That's why you can hear thesubtle strains of jazz in the
background in this magnificentbuilding.
And joining me here is, ofcourse, someone who's basically,
(12:25):
uh, the sort of lodger on theshow.
He's, uh, a guest co-star, uhmany times.
Mr tim harley, joining us fromkaisen.
Tim, it has been the full montythis morning.
We seem to have covered off somany topics, but obviously,
having you here, a genuine dataexpert, tell us I mean, you know
(12:49):
how has Refit gone?
We've had some very honestopinions here about this was
always going to be a massivechallenge for the industry.
Speaker 7 (12:57):
Yeah, there's been a lot, andrew, for firms to get in
up to speed with.
They've done a very good job ofgetting up to speed with the
validation rules, which meanstheir submissions have by and
been successful after a coupleof teeming issues.
That's been a great story.
And the collaboration betweenfirms and the rest of the
industry.
So trade repositories such asRegistr and trade associations
(13:18):
they've all talked together verywell very good working groups
to see what the problems are,what the gray areas are and how
to report under those situations, what the problems are, what
the gray areas are and how toreport under those situations,
and so firms have risen to thatchallenge very, very well.
There's still work to do on aday two level in terms of making
sure that their data is fit forpurpose, but that's fully to be
expected.
With the amount of changes thatcame in for a mere refit, there
(13:41):
would always be a long tail ofthings to remediate and that's
where firms are now.
They've done a good job forsubmissions and they're ready to
look to see how good that datais, how fit for purpose is the
data that they've reported.
Speaker 1 (13:56):
One of the things that seems to have emerged is
the fact that, prior to thego-live for a mere refit, there
was a lot of testing that wasbeing done with synthetic trade
synthetic data.
There was a lot of testing thatwas being done with synthetic
trade, synthetic data, but whatthe process has shown is that
actually, that wasn't really agood approximation for the real
live operational data that isgetting shunted through the
(14:16):
system at massive volumes acrossthe whole of the EU.
Do you think this has changedthe way you think about how
these systems need to be plannedand tested?
Speaker 7 (14:25):
Yeah, testing is tricky for firms.
There's always a limited numberof resources in order to
perform testing at the same timethat you're building the
changes themselves.
And the thing that's tricky,especially for a mere refit, is
you've got to look at testingnot only the type of derivatives
that you execute, but also thelifecycle events that go with
(14:46):
that.
And then couple all of thatwith the fact that there's no
substitute for real live data,and so the synthetic data is
useful to a point, but reallythe real go live data is where
all of the different edge casesand everything like that come
out of the woodwork and test howgood your implementation was.
(15:07):
But that's hard for firms.
It's hard to bring all thosetogether in synthetic data, and
so it still has a purpose, butisn't as good as live, actual
derivatives themselves.
Speaker 1 (15:19):
Now we've gone from 140 fields up to 207, something
like.
I know you'll know the exactnumber, but has this really
enhanced the data quality?
Are we now seeing thisinformation getting piped
through to the ECB?
Is it hitting monetary policycommittees?
Is it making a difference tosystemic risk in Europe
(15:40):
stabilizing at a time, of course, when we might see regulatory
rollback in the States?
We could see a lot of changesand our sort of journey towards
data harmonization seems to besort of on a bit of a knife edge
at the minute.
Speaker 7 (15:55):
Yeah, so the fields went up to 204, including the
execution agent.
A lot of the new fields werearound commodities reporting,
and so it's useful to give thatgranularity.
The real increase in the dataquality is around the change to
existing fields andclarification for those existing
fields, whether that be thevalidation rules or in the
(16:15):
guidelines that the reg laceshave released, and that's really
, really useful.
And so, for example, thechanges that have gone into the
validation rules counter some ofthe items that were in the
previous ESMA Q&A where eitherthere was mistakes or confusion
from the regulator or somethinglike that, and so they all point
towards the right level of dataquality or increasing data
(16:38):
quality as those validationrules get stricter, and so
that's the right way forward forfirms.
Speaker 1 (16:44):
Now a couple of completely off-topic questions
for you.
Number one uh kaizen, have uhreceived, uh, fantastic uh
investment now, um, is thischanging your outlook?
Are you going to be scaling upyour department, launching new
products?
I mean, what's on the hartleydesk right now?
Speaker 7 (17:02):
yeah, lots for that.
So we're really excited aboutuh working with our new
investors.
Lots for me and for the rest ofthe firm to do.
We are launching differentproducts in different regions
that we currently do now, aswell as increasing the clients
that we have for existingproducts across our ReportShield
range.
But, yeah, it's a lot.
(17:23):
So absolutely scaling up.
There's a lot to do there, butalso scaling up in the right way
.
So we not only increased thenumber of um uh people employed
at kaizen um, but also using ourother products, um, such as a
single rule book, to make surethat firms have one source for
regulatory uh resources.
Uh, we make sure that we'reimplementing smart um changes to
(17:44):
so firms can analyze the data.
They can look online at ourportals to make sure any
remediation is clear and howmany trades it impacts.
Speaker 1 (17:54):
So it's scaling up, but scaling up in the right way,
and thank you, tim Hartley,director of Regulatory Reporting
at Kaizen, for joining us today.
Speaker 7 (18:00):
Thanks, tim, great.
Thank you Great to be here,andrew.
Speaker 1 (18:04):
Okay now those of you who remember the opening
episode of the season, tim wasgiven a spot quiz on sausages,
which he had no time to preparefor, had no idea it was coming,
and I think he did pretty well.
Anyway, one of the questions weasked was about chorizo, and
this has caused a huge amount ofdebate, if not controversy, as
(18:27):
various people have waded in andsaid that chorizo is not a
sausage and others have saidthey believe it is a sausage,
and this issue will be decidedin this very show, as I asked
our guests for that.
So do make sure you listen tothe end for our chorizo
controversy special Moving on.
Of course, it's important thatyou know.
(18:48):
At events like this, we alsocatch up with other guests to
find out their view of howthings played out, and I want to
introduce Felicity Howley fromABN Amro Clearing, who had her
own take on the challenges thatAmir Refit's caused from the
view of a clearing bank andmarket infrastructure.
(19:11):
How has it been for you?
Do you think that there aresome lessons from the software
industry that could get rolledthrough the financial sector to
try and make it less of a bumpyride next time a big regulation
comes into force, like a mererefit?
Speaker 8 (19:30):
Yeah, I think, if I look kind of within the
organization, so we're at theend of the chain, so we're
getting the data from differentteams and those teams don't
really understand the importanceof some of the fields and,
especially when we have kind ofglitches in systems or things
that we're not receivingexternally or not being
processed properly, they don'tactually realize the impact that
(19:50):
that has on the reporting.
And then quite often we'rereporting T plus one and quite
often we're finding kind of outabout the issues late in the day
and it means that we have tothen try and fix those issues.
And I think, yeah, that's maybewithin the organization is a
bit of a lack of understandingof those people who are working
on those systems.
But, um, yeah, in in terms oflessons learned, um, yeah, we,
(20:15):
we get our information.
So for the additional fields,for refit, we get our
information from the ccps andwe're reliant on them to be able
to actually make changes to oursystems.
And what I saw with Reeford isthe changes that had to be made.
It was actually the team that Icame from, market
Infrastructure.
The changes were huge.
I mean, you're getting I thinkit was about 13 different
(20:37):
specifications.
You have to go through allthose specifications.
No CCP does it in the same way.
Some they'll send you theinformation intraday, some
they'll send the information endof day and you have to try and
figure out OK, how are we goingto get these fields in, how are
we going to report them?
And it puts huge pressure onthe team to deliver that short
term and also puts pressure onus because we have to test, and
(20:59):
we need to test with the volumesthat we're actually doing in
production on a daily basis.
So that's something that weyeah, we struggled with and we
really went into animplementation squeeze with
getting the specs in, analyzingthem, making the changes and
trying to test the data.
And then you see that thequality of the testing, yeah, it
(21:21):
could be much better, and I'dlike to see in the future, amy
or Rieferts, that we get there'ssome agreement made on when the
CCPs have to provide theirspecifications, maybe six to
eight months in advance, ormaybe that they're even actually
already providing the fieldsbefore we have to adhere to the
regulation.
Speaker 1 (21:39):
Now, do you think that there needs to be more
feedback as well from nationalcompetent authorities and from
regulatory supervisory bodiesabout the key areas where the
data needs to improve, where thedata quality needs to be a
sharper focus, so that marketparticipants have got a better
chance of getting it right firsttime?
Speaker 8 (22:01):
I think you know from the event today and the
questions that have been askedduring the panel, but also some
questions that have been askedand discussed here while we've
been having lunch, it's obviousthat you know we could get some
help on that.
There's a lot of people askingI mean, even Roberto got the
question today what fields arethe regulators looking at?
(22:21):
And I think in terms of, if youlook at the AMIA regulation,
why it's there?
I mean we're trying to makesure that we're aware of
counterparty risks.
So the fields that are lookingat valuation amount, notional
amount collateral, I think thoseare the fields that are looking
at valuation amount, notionalamount collateral.
I think those are the fieldsthat are really the important
ones.
Some of them are not part ofthe reconciliation at the moment
(22:43):
, but I think it would be niceif there was some kind of a
report shared with all of theparties to say these are the
fields that are the mostimportant ones.
Speaker 1 (22:55):
And looking forwards 2025,.
Do you get a break now?
Are you going to get a littlechristmas holiday, get to put
your feet up, maybe a spot ofskiing, or are you going to be
in the office with a sandwichfrom, uh, the dispensing machine
, uh, hammering your way througheverything to get ready for
dora and whatever is comingafter that?
Speaker 8 (23:15):
I do get time to have a little Christmas break.
I'm actually going to Ireland,so I get a little bit of a
holiday.
But yeah, I mean, 2024 has been.
It's been a crazy year for allof us.
And you know, there is there'sone month left and just even
though it's only a few weeks, itactually feels like we still
(23:35):
have to deliver a lot in 2024.
2025, yeah, we still want toenhance our systems.
We want to make sure that ourcontrols are all in place, that
we're looking at the dataaccuracy as well.
So we already have a hugeamount of work for 2025.
And, of course, there's all theother things that are going on
as well, and we also want toupgrade our systems as well.
(23:58):
We have lifecycle managementthat needs to be taking place.
But I will be taking asabbatical.
Speaker 1 (24:05):
Fizzi Hallie, thank you so much for joining us and
congratulations on a great panel.
Speaker 8 (24:10):
Yeah, I look forward to the quiz the next time.
Speaker 1 (24:13):
Oh yeah, by the way, is chorizo a sausage?
Now, this wouldn't really be aproper Regisier Roundup show
without a few words from thisman, the man who put the canary
in the wharf, the man who was inDevonshire at Never Square and
also now known as the man who'sin charge of St Mary's Axe.
It is, of course, mr JohnKernan, the CEO of Registrary in
(24:39):
the UK, who's enjoyingsomething of the limelight after
a hugely successful UKimplementation of Amir Refit,
and I managed to drag John intoa side room at the very, very
busy event, uh, so we couldcatch up about uk emir and what
next year is looking like forhim well, it's certainly gone,
(25:02):
um, it's certainly gone a lotmore smoothly than it did in the
european union, which, ofcourse, is only to be expected.
Speaker 9 (25:10):
Really, um, most of our uk clients already have
european union Union reportingobligations and so, you know,
they've worked through a lot ofthe systemic issues in, you know
, with sourcing the data anddata accuracy.
So, yeah, touch wood, there'sstill a few things we need to do
(25:34):
, but rejection rates have beenincredibly low after the first
few days and, touch wood, thingsare going well.
So now our UK clients really,they now need to focus on
upgrading their open trade data.
They have a few more months yetum to complete that and then,
(25:56):
of course, I think in september,uh, there will be um
introduction of addition, uh,reconciliation fields that they
need to focus on.
Speaker 1 (26:06):
So so, yeah, um, pretty successful, I would say
uh, but we certainly can't reston our laurels do you think that
the uk implementation benefitedfrom coming about six months
later, so there was a chance toactually see what real data does
?
Because there's been a fewpeople today who have talked
about this idea that thesynthetic data and the test data
(26:28):
just didn't come in hard enoughor quickly enough to really
replicate what the liveenvironment would be like in the
European implementation of EMEA.
Speaker 9 (26:38):
Yeah, I think that's certainly the case.
Yeah, I mean, you can do tensof thousands of test cases and
you know you still very oftenyou only flush out systemic
issues by actually reporting inproduction.
So I think that's the case.
(26:59):
The other consideration is, ofcourse, by definition, the UK
volumes are lower because it'sone market versus 27 markets, so
there's less complexity in thatregard.
Fewer NCAAs, obviously.
So I think there are a fewdifferent considerations.
Speaker 1 (27:24):
Yeah, Well, one of the really nice things about
this annual event is I get tocatch up with old friends, and
here we have the ManagingDirector of Registry RUK, david
Retana, fresh from his panelhere, busy networking with
clients and doing all the thingsthat an MD has to do, but I've
(27:46):
managed to grab him to ask a fewquestions.
David, since we last spoke,it's been a long 2024.
Were you expecting it to bequite such a big challenge, not
just for the trade repositoriesand market infrastructure, but
for the whole industry?
Speaker 10 (28:02):
Oh, yes, we were expecting that, definitely For
us.
It was explained in the panelsand Alfonso explained it quite
well and Alfonso explained itquite well.
For us it was a doublechallenge because of the
implementation of a brand newtechnology and also
(28:24):
implementation of a so radicalregulatory change with a fixed
deadline.
So we don't have to forget that.
So definitely for the Europeans, it was for sure that it was
going to be a path of pain,let's say, and yeah, definitely
(28:50):
we had to do it.
I would say that on the UK sidethey were smart to say, okay,
let's see what our friends inthe EU perform after the
implementation, and then we willsee after four months.
So definitely, theimplementation in the UK has
(29:12):
been so much smoother incomparison with the turmoil in
the EU.
We were lucky of thatdefinitely.
Now the situation is much morestable on the EU side and we are
happy for that.
And I'm pretty sure I mean inthree months' time In three
(29:50):
months' time probably, we willhave a state-of-the-art system
working perfectly and ready forimproving and ready for
implementing ancillary servicesfor customers.
This is our main objective forthe next season, is our main
objective for the next season.
I think it is imperativebecause after all these years of
pain with constant regulatorychanges, now it is time to
devote time to customers andimplement ancillary services.
(30:14):
So, yeah, very much lookingforward to the next season.
Speaker 1 (30:19):
That's fantastic, David.
Thank you for joining us.
I know you're very busy, so I'mgoing to say goodbye, good luck
, and let's not leave it a yearnext time.
Speaker 10 (30:27):
Thank you very much, Andrew.
Speaker 1 (30:36):
So we need to bring the show to a close, uh, but
before we go, uh, we do need tosettle the question of whether
or not chorizo is a sausage.
Now, in episode one, uh, youmight remember, we started
giving our guests surprisequizzes to see what would happen
, and one of the first peoplecompletely unprepared to get hit
with the quiz bomb was, ofcourse, tim Hartley, director of
(30:59):
Regulatory Reporting at Kaizen,and he was up against John
Graham, whose specialist topicwas Bruce Springsteen.
John did fabulously well.
Well done, john, if you'relistening.
John Graham from the FuturesAssociation, tim had some pretty
controversial questions, one ofwhich was hotly debated
afterwards by the Spanishmembers of the crew, because we
said chorizo was a sausage andchorizo is not a sausage, or is
(31:22):
it?
This is the question we settlenow with the great chorizo
debate.
So, please, as the music playsus out, and I invite all of you
to join us for our very specialpart two show, which will also
have some special Christmasmessages, and don't forget to
join us for our very specialpart two show, which will also
have some special Christmasmessages.
And don't forget to join us onour LinkedIn page, that's
linkedincom.
Slash company, slash register,hyphen TR, where you can find
(31:44):
out more about our event.
You can see all the pictures.
You can find our Flickr gallerywith lots and lots of pics of
all the participants there.
Plus, of course, you cannetwork with everyone that's
been in this show, and morebesides.
And in the meantime, I'm goingto leave you with the great
chorizo debate.
In these days of dataharmonization and improving
quality and reducing rejectionrates, we need to get our
(32:05):
sausages right.
Or do we?
And one final question, which isthere are two sort of hot
debates that have been flyingaround here.
One is is an FX forward, aderivative or not?
(32:29):
There's some confusion aboutthat, depending on where you go
in Europe.
And of course, the other partof that question is is chorizo a
sausage or not?
Because in spain apparently not.
What's your view on these?
Speaker 7 (32:41):
so the fx uh is interesting.
The um, yeah, it depends.
The um national competentauthority, uh for um, of which
is often more than one for eachcountry, still has the deciding
say on what is a derivative, andunder remear it's all
derivatives that be reported.
So, in short, firms that arenot sure would need to check
(33:02):
with their nca whether thatparticular product, such as an
fx forward, is a reportableproduct under remear I.
Is it deemed to be a derivative?
For example, under the fca, fxforwards are reportable whereas
fx spots are not a derivative.
For example, under the fca, fxforwards are reportable whereas
fx spots are not.
On the more thorny topic ofchorizo and sausages, yeah, I,
um, it definitely looks like asausage, it smells like a
(33:25):
sausage and it's great, but myspanish friends tell me it's
absolutely not a sausage and so,but all of those things are
very hard pill to swallow.
So for the time being, sincewe're in Madrid, I'm going to
say it's not a sausage, but itis very enjoyable and thank you
to all our Spanish friends forthat education.
Speaker 6 (33:43):
I don't think so.
Do you think so?
Speaker 1 (33:46):
I couldn't possibly say you know, I have to remain
neutral on this one.
Whatever it is, it's delicious.
Speaker 6 (33:52):
It is delicious.
I thought, so I wouldn't say so, yes.
Speaker 5 (33:59):
Well, it's a kind because, if we understand
sausage, it's something that youhave meat inside and in the how
to say, the piece of thestomach.
Yes, it's sausage.
Speaker 8 (34:11):
I think it is.
I don't know about the Spanishpeople here today.
Speaker 10 (34:16):
Of course not.
I'm Spanish.
It's like rice with things isnot paella, for example.
Of course not.
Speaker 9 (34:24):
It's a sausage and you know now I've said that I'm
going to be in a lot of trouble.
Speaker 1 (34:27):
You are, thank you.
That's Nick Abruz, the formerhead of business development,
now on the run, and, andres,where do you stand on the
chorizo debate?
Speaker 10 (34:39):
I agree with Nick.
To be honest, my bosses are inSpanish, so I'm not going to
lose my job, but I agree withhim.
Speaker 9 (34:48):
Yes, it is a sausage.
Why do you ask?
Speaker 4 (34:52):
I know this is a tricky question and it is not
ask.
Speaker 8 (34:58):
I know this is a tricky question and it is not,
it's a thing on its own, Iwouldn't call it a sausage.
Speaker 10 (35:01):
but if it serves for anything, do not put it on
paella Chorizo.
Yes, well, it depends on whichcountry you are.
In Spain it is a sausage, butif you go to Argentina, I know
it's something different, buthere in Spain it's a sausage.
Speaker 4 (35:17):
Saute it with paprika right.
Speaker 3 (35:21):
Yeah, but is that sausage?
I would believe, yeah, I wouldsay yeah, absolutely 100%.
Speaker 8 (35:27):
I'm always against it .
No, it's 100% fact.
No, it is not a sausage.
Speaker 4 (35:34):
No, it's not, it's not, it's not.
Chorizo is much better than asausage.
Yeah, no, it's not, it's not,it's not.
Chorizo is much better than asausage, and I invite everybody
coming to Spain to taste ourchorizo, which is something so
typical Spanish that doesn'thave a translation.
I think, yeah, no, chorizo.
So repeat, all with me Chorizo.
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