This module of the Cesarz system has been designed to fulfil the requirements of the MiFID II/MiFIR regulations, which extend the obligation to report financial market transactions to the Polish Financial Supervision Authority.
One may also read about selected modules of the Cesarz system by the Risco Software company on the website of BANK Financial Monthly and in article no. 3/2017 of that monthly.
This module of the Cesarz system has been designed to fulfill the requirements of the MiFID II MiFIR regulations, which extend the obligation to report financial market transactions to the Polish Financial Supervision Authority.
The module is designed for implementation at such investment entities as banks, brokerage houses, or custodians. The reporting of events concerning securities and derivative transactions to a regulator takes place in a new way, in comparison to the MiFID I Directive. It includes, to a great degree, information which has not been collected so far (e.g. the so-called “decision maker”), information with characteristics different than those in other reports (e.g. EMIR), and a new data format.
The changes which are being made concern brokerage and banking activity, which leads to modifications in the IT systems used by the treasury and custody departments, as well as by brokerage offices/houses. The scope of the reported data is about a dozen times greater (more transaction types, complicated exceptions, various types of contracts dedicated to various entities, the possibility of reporting on behalf of a third party, more fields, events accompanying a transaction, a different data format).
New areas will be included in the requirement, for example, custody, which means that reporting will now include, among other things, the transfer of securities between client accounts.
Taking into account the ESMA guidelines, the Cesarz_MiFIR software will allow for reporting to the supervisor in a non-redundant manner and without repetitions, including: the testing of the reporting process, reconciliation with the data samples from the Polish Financial Supervision Authority, completeness, exclusion of errors, agreement with the actual state of affairs, timeliness, and transparency before and after transactions.
Taking into account that reporting is one of the dozen or so important requirements of MiFID II/MiFIR, which have an influence on IT systems, and that those requirements are interrelated, the scope and degree of the complexity of regulatory projects to be realized in 2017 are exceptionally big. Very soon there will be, in the same areas of banking, an obligation to implement EMIR II, SFTR, or PRIIPS.
It simplifies the transaction reporting process and it is fully compliant with the requirements of the National Depository for Securities (Polish: Krajowy Depozyt Papierów Wartościowych, abbreviated to KDPW) and of the supervisory authorities of the European Union (European Securities and Markets Authority, abbreviated to ESMA) and Poland (Polish NCA, in Polish: Komisja Nadzoru Finansowego) abbreviated to KNF).
It is a comprehensive middleware in the process of submitting information about transactions to repositories. It makes it possible to exchange messages between bank systems and systems of central trade repositories, according to the requirements of the MiFIR regulation.
Another module of the Cesarz system, Cesarz_SFTR, is being prepared for the realization of the requirements of the SFTR regulation.
Risco Software Sp. z o.o.
Al. Jerozolimskie 123a
02-017 Warszawa
tel. +48 22 622 58 33
fax. +48 22 622 58 34
e-mail: kontakt@riscosoftware.pl
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