EMIR Delegated Reporting

HSBC EMIR Delegated Reporting Service

The requirement to report all derivative trades to a Trade Repository is one of the most complex requirements to implement under EMIR. HSBC understands there are client needs in this area and is offering a client delegated reporting service.

Overview

What is the EMIR Delegated Reporting Service from HSBC?

In order to facilitate adherence with trade reporting requirements for in-scope derivatives, EMIR permits counterparties to delegate the reporting of their trades to the other counterparty.

To help our clients to meet their reporting obligations HSBC offers a Delegated Reporting Service. The HSBC Delegated Reporting Service applies to relevant transactions entered into between your EEA entities and HSBC sites.

More information on which HSBC sites offer the Delegated Reporting Service and the nature of the service can be found under the 'Trades with HSBC in Europe' and 'Trades with HSBC Bank USA NA' tabs. The terms and operational procedures of service may vary depending on which HSBC site you transact with.

HSBC will provide a Delegated Reporting Service for its clients where they are trading directly with HSBC. Note that we will not report trades executed through a central counterparty or intercompany trades and we will only report exchange-traded derivatives where specifically agreed between us.

By subscribing to the HSBC EMIR Delegated Reporting Service, you authorise HSBC to report your trade-related data on your behalf. Generally, you only need this service if you are an EEA entity subject to EMIR trade reporting requirements.

Clients trading with HSBC Bank USA NA

Clients trading with HSBC Bank in Europe

Last updated: 5 January 2016

Trades with HSBC in Europe

Reporting your trades with HSBC in Europe

The below service description is relevant for clients trading with HSBC entities in Europe:

Country HSBC entity
Czech Republic HSBC Bank plc (branch)
France HSBC France SA
Greece HSBC Bank plc (branch)
Malta HSBC Bank Malta plc
Poland HSBC Bank Polska SA
Spain HSBC Bank plc (branch)
UK HSBC Bank plc

Clients trading with HSBC Bank USA, National Association

What data is reported?

When subject to EMIR reporting requirements, an EEA counterparty to a trade is required to send two blocks of data electronically to the Trade Repository of its choice:

  • Counterparty data (seller or buyer data block): this block of data includes a total of 16 fields such as the counterparty's broker ID, beneficiary ID, or the 'directly linked to commercial activity or treasury financing' ('hedging') information.
  • Common data: this block of data includes a total of 59 fields amongst them the Unique Trade Identifier (UTI), Product ID, Notional amount, currency and other trade static and economic data. These data fields are identical for both counterparties. 10 extra fields are in scope for the reporting of Collateral and Valuation data if your institution's classification is NFC+/FC.

HSBC offers a full delegation service

HSBC offers a full delegation model:

  • HSBC will produce one report including your Counterparty data block, HSBC's Counterparty data block and the Common data block (see diagram below)
  • HSBC will generate a Unique Trading Identifier (UTI) for each trade
  • HSBC will send the data to the Trade Repository (TR)
  • HSBC provides an online ePortal service via HSBCnet whereby clients can review their trade data real time

Regulators

Your counterparty data block

HSBC will populate your counterparty data block based on data you provide upon registration for the service. For each trade, you will need to provide details in relation to:

  • Broker ID.
  • Beneficiary ID.
  • The 'Directly linked to commercial activity or treasury financing' information.
  • Collateral and Valuation data are required, for NFC+ and FCs.

You have the opportunity to provide HSBC with default values when you register for the service and you can always modify these values in the ePortal.

The common data block

This block of data includes a total of 59 fields amongst them the UTI, Product ID, Notional currency and other trade static and economic data. This will also include 10 Collateral and Valuation fields if your institution classification is NFC+/FC.

Our counterparty data block

This block includes a total of 16 fields related to HSBC.

Key benefits of using the Delegated Reporting Service from HSBC

The Delegated Reporting Service from HSBC will report your in-scope trades with us to a trade repository on your behalf.

Client support

A dedicated support team will be on hand to assist you during European business hours.

Benefits of HSBC Delegated Reporting Service

HSBC does not charge for the Delegated Reporting Service. However, there are indirect costs, independent of HSBC, to be incurred before you can register for this service (obtaining a Legal Entity Identifier (LEI), for instance).

ESMA expects all entities covered by EMIR to obtain a Legal Entity Identifier (LEI or pre-LEI*). Several 'Local Operating Units' or 'LOUs' provides global LEIs, which means that they are able to generate LEIs for clients from any country. LOUs charge approximately €150 initially, plus €100 for annual maintenance.

Benefits of HSBC's ePortal

Accessibility and Data timeliness

  • Accessible 24 hours a day, 5 days a week
  • Real time trade reporting updates with information available on T+0

Functionality

  • Ability to highlight and raise a trade discrepancy
  • Ability to change and submit static amendments in real time
  • Ability to download your reportable trades to excel

Security

  • Direct delivery of trade data to trade repository
  • Secure access to data for authorised users only

Reporting

  • Trade detail with access to DTCC.xml message
  • Clearly indicated trade reporting status of each trade

Unique Trade Identifier (UTI)

Where you are registered for HSBC EMIR Delegated Reporting Service, HSBC will generate, supply and report the UTI as part of the trade confirmation, except for trades not affirmed through third party platforms. For trades affirmed through third party platforms (MarkitWire or DS Match, for example), the platform will create the UTI and provide it to both sides.

What if you are using a middleware platform?

When you transact with us over a middleware platform (specifically: Markitwire, DSMatch or ICELink), you are obliged to delegate reporting responsibility to the platform over which the trades are transacted. However, HSBC's Delegated Reporting Service includes a Gap Fill tool to provide collateral and valuation data fields for NFC+ and FC clients that your middleware platform may not provide., This service is offered as long as your third party platform is reporting to DTCC, our chosen Trade Repository.

Clients trading with HSBC Bank USA, National Association

Last updated: 5 January 2016

Trades with HSBC USA

Reporting your trades with HSBC Bank USA, National Association (NA)

The below service description is relevant for clients trading with HSBC Bank USA National Association (NA).

Clients trading with HSBC in Europe

What data is reported?

When subject to EMIR reporting requirements, an EEA counterparty to a trade is required to send two blocks of data electronically to the Trade Repository of its choice:

  • Counterparty data (seller or buyer data block): this block of data includes a total of 16 fields such as the counterparty’s broker ID, beneficiary ID, or the ‘directly linked to commercial activity or treasury financing’ (‘hedging’) information.
  • Common data: this block of data includes a total of 59 fields amongst them the Unique Trade Identifier (UTI), Product ID, Notional amount, currency and other trade static and economic data. These data fields are identical for both counterparties. 10 extra fields will be in scope for the reporting of Collateral and Valuation data from 12 August 2014. The collateral and valuation fields will only apply to NFC+ and FC.

HSBC will report your data block and the common data block

  • HSBC will produce one report including your data block and the common data block (see diagram below).
  • HSBC will generate a Unique Trade Identifier (UTI) for each trade.
  • HSBC will send the data to the Trade Repository (TR).

Regulators

Your counterparty data block

HSBC will populate your counterparty data block based on data you provide upon registration for the service. You will need to provide the following information, per trade, if this has not been defaulted at registration:

  • Broker ID.
  • Beneficiary ID.
  • The 'Directly linked to commercial activity or treasury financing' information.
  • Collateral and Valuation data are required, 180 days after 12 February 2014 for NFC+ and FCs.

You have the opportunity to provide HSBC with default values when you register for the service and you can always modify these values when you acknowledge the reporting file.

The common data block

This block of data includes a total of 59 fields amongst them the UTI, Product ID, Notional currency and other trade static and economic data. This will also include 10 Collateral and Valuation fields from 12 August 2014 for NFC+ and FC.

To be able to review and modify the reported data, you will need to register directly with DTCC, the HSBC Trade Repository of choice.

Please note the Delegated Reporting Service for clients trading with HSBC Bank USA NA will currently only be available for Rates and FX. Further enhancements to the service are scheduled for late-2014 to also include Credit, Equities and Commodities.

Key benefits of using HSBC’s Delegated Reporting Service

The Delegated Reporting Service from HSBC will report your in-scope trades with us to the DTCC on your behalf.

A dedicated support team will be on hand to assist you during European business hours.

Unique Trade Identifier

HSBC will always generate the Unique Trade Identifier (UTI) for each trade reported via our Delegated Reporting Service.

What if you are using a middleware platform?

When you transact with us over a middleware platform (specifically: Markitwire, DSMatch or ICELink ), you are obliged to delegate to the platform for reporting of this portion of your trading activity.

Last updated: 16 June 2014

ePortal

The EMIR Delegated Reporting Service ePortal

The EMIR Delegated Reporting Service (DRS) ePortal is an online service offering available via HSBCnet. Existing users of the DRS will already have had their access upgraded between 28 July 2014 and 28 October 2014. If you are completely new to the DRS, you will first need to register. Upon your registration for this service, HSBC will contact you with further details.

The DRS ePortal provides you with the ability to change and submit static amendments and highlight and raise a trade discrepancy. With this service you will be able to navigate through a number of screens to access your trade data.

The online Delegated Reporting Service ePortal provides:

Accessibility and Data timeliness

  • Accessible 24 hours a day, 5 days a week
  • Real time trade reporting updates information will be available on T+0

Functionality

  • Ability to highlight and raise a trade discrepancy
  • Ability to change and submit static amendments real time
  • Ability to download your reportable trades to excel

Security

  • Direct delivery of trade data to trade repository
  • Secure access to data for authorised users only

Reporting

  • Trade detail with access to DTCC.xml message
  • Clearly indicated trade reporting status of each trade

If you are new to the HSBC EMIR Delegated Reporting Service and would like to register, please click here to onboard or contact emir.delegated.reporting@hsbcib.com for more information.

Last updated: 5 March 2015

Register

How to register for the HSBC EMIR Delegated Reporting Service ePortal

New to HSBC EMIR Delegated Reporting Service

If you are completely new to the HSBC EMIR Delegated Reporting Service, please complete the below documentation and return to our EMIR Reporting team at: emir.delegated.reporting@hsbcib.com.

Please note: ESMA expects all counterparties to obtain a Legal Entity Identifier (LEI) to be able to report their trades.

The HSBC EMIR Delegated Reporting Service

Our service is online and available via HSBCnet. The online Delegated Reporting Service provides:

Accessibility and Data timeliness

  • Accessible 24 hours a day, 5 days a week
  • Real time trade reporting updates with information available on T+0

Functionality

  • Ability to highlight and raise a trade discrepancy
  • Ability to change and submit static amendments in real time
  • Ability to download your reportable trades to excel

Security

  • Direct delivery of trade data to trade repository
  • Secure access to data for authorised users only

Reporting

  • Trade detail with access to DTCC.xml message
  • Clearly indicated trade reporting status of each trade

Note: The onboarding documents differ according to whether you already have an HSBCnet User ID or not.

How to onboard to the HSBC EMIR Delegated Reporting Service when you have an HSBCnet User ID

In the event that you would not have an HSBCnet user ID, please read instructions further below.

Please complete and return the following documents via email to emir.delegated.reporting@hsbcib.com to onboard to the Delegated Reporting Service:

Please read and retain the following documents:

Trade Valuation Reporting

The HSBC EMIR Delegated Reporting Service can also support you if your institution is required to report trade valuation data. From 12 August 2014, EU established financial counterparties (FC) and non-financial counterparties that exceed the clearing threshold (NFC+ ONLY) must report the value of any in-scope trades for Collateral and Valuations. Should you need support in identifying your classification please refer to your relationship manager.

If you would wish to delegate your valuation reporting to HSBC:

Please complete and return the following document:

Please read and retain the following document:

Please refer to the HSBC EMIR Delegated Reporting Procedures Manual for details on how this service will be provided.

How to register for the HSBC EMIR Delegated Reporting Service when you do not have an HSBCnet User ID

Prerequisite: If you do not have one already, you must get an HSBCnet ID.

The HSBC EMIR Delegated Reporting Service is free, available on HSBCnet and it is quick and easy to register. You can download the HSBCnet Step by Step User Registration Guide document to support you with the registration process.

Please complete and return the following documents via email to emir.delegated.reporting@hsbcib.com to register to the HSBC EMIR Delegated Reporting Service:

Please read and retain the following documents:

Trade Valuation Reporting

The HSBC EMIR Delegated Reporting Service can also support you if your institution is required to report trade valuation data. From 12 August 2014, EU established financial counterparties (FC) and non-financial counterparties that exceed the clearing threshold (NFC+ ONLY) must report the value of any in-scope trades for Collateral and Valuations. Should you need support in identifying your classification please refer to your relationship manager.

If you would wish to delegate your valuation reporting to HSBC:

Please complete and return the following document:

Please read and retain the following document:

Please refer to the HSBC EMIR Delegated Reporting Procedures Manual for details on how this service will be provided.

Last updated: 5 March 2015

ETDs

Exchange-Traded Derivatives

Clients trading Exchange-Traded Derivatives (ETD) will not receive a daily file to validate what HSBC has reported to the Trade Repository on their behalf. This is because for ETD there is no requirement for clients to enrich the trade data.

ETD clients will receive a monthly trade file detailing all trades that have been reported for the previous month. If ETD clients wish to see what has been reported on a daily basis, they will need to register directly with DTCC (HSBC's Trade Repository of choice). Please note that DTCC charges depending on the number of positions and transactions per entity.

HSBC's Delegated Reporting Service is offered to select clients. Any ETD client wanting to apply for the Delegated Reporting Service should contact their HSBC representative.

Last updated: 5 January 2016

FAQs

Frequently Asked Questions

HSBC Bank plc ("HSBC") in Europe

Query Answer
What is delegated reporting? The European Markets and Infrastructure Regulation (EMIR) requires a party to a derivatives trade that is subject to EMIR to report to a Trade Repository approved by the European Securities and Markets Authority (ESMA). Since12 February 2014 EMIR allows parties to delegate their reporting to the counterparty or another entity, but you retain the responsibility for any reporting done on your behalf.
Does HSBC offer delegated reporting to its clients? HSBC offers a delegated reporting service for EU clients of HSBC in Europe.
Which product categories are supported by the Delegated Reporting Service for clients of HSBC in Europe The EMIR Delegated Reporting Service for clients trading with HSBC in Europe is available for all OTC products in-scope for EMIR for Rates, Credit, Equities, Commodities and FX.
I am a client of HSBC in Europe. How do I apply for the EMIR Delegated Reporting Service?

To register for the Delegated Reporting Service please fill out the documents on the registration tab and return them to emir.delegated.reporting@hsbcib.com

Which Unique Trade Identifier (UTI) should I use?

Counterparties must agree and use the same UTI. Where you are registered for HSBC EMIR Delegated Reporting Service, HSBC will generate, supply and report the UTI as part of the trade confirmation, except for trades not affirmed through third party platforms. For trades affirmed through third party platforms (MarkitWire or DS Match, for example), the platform will create the UTI and provide it to both sides.

Where you report your own trades, you should agree with each of your counterparties on who will assign the UTI.

How can I view or amend the DTCC report?

You can view your reports in two ways:

  1. HSBC's Post Trade Portal
  2. The DTCC web portal

Both solutions allow you to access your reports for viewing or amendment. To use the DTCC portal you must register with DTCC.

Do I need to sign the HSBCnet agreement for the service if I am already an existing user?

Yes, although you may have a HSBCnet user account we still need this HSBCnet agreement signed for delegated reporting purposes. Please also add your existing user ID to the onboarding form.

How do I sign up to get a HSBCnet User ID? Please follow the step by step guide on the registration tab to sign up for a User ID- Please do not register for a new one if you already have an account set up.
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HSBC Bank USA, NA

Query Answer
What is delegated reporting? The European Markets and Infrastructure Regulation (EMIR) requires a party to a derivatives trade that is subject to EMIR to report to a Trade Repository approved by the European Securities and Markets Authority (ESMA). Since12 February 2014 EMIR allows parties to delegate their reporting to the counterparty or another entity, but you retain the responsibility for any reporting done on your behalf.
Does HSBC offer delegated reporting to its clients? HSBC offers a delegated reporting service for EU clients of HSBC in Europe and for EU clients of HSBC Bank USA, National Association (NA).
Which product categories are supported by the Delegated Reporting Service for clients of HSBC Bank USA, NA? The EMIR Delegated Reporting Service for clients trading with HSBC Bank USA NA is only available for Rates and FX. Further enhancements to the service are scheduled in mid-2014, to also include Credit, Equities and Commodities.
I am a client of HSBC Bank USA, NA. How do I apply for the EMIR Delegated Reporting Service?

To register for the Delegated Reporting Service you should contact hbus.emir@us.hsbc.com. Or your HBUS representative You should also register directly with DTCC, the HSBC Trade Repository of choice to view what has been reported on your behalf.

Which Unique Trade Identifier (UTI) should I use?

Counterparties must agree and use the same UTI. Where you are registered for HSBC EMIR Delegated Reporting Service, HSBC will generate, supply and report the UTI as part of the trade confirmation, except for trades not affirmed through third party platforms. For trades affirmed through third party platforms (MarkitWire or DS Match, for example), the platform will create the UTI and provide it to both sides.

Where you report your own trades, you should agree with each of your counterparties on who will assign the UTI.

How can I view or amend the DTCC report? DTCC has a web portal where you can access your reports for viewing or amendment. To use the DTCC portal you must register with DTCC. HSBC can help you with that registration, please email hbus.emir@us.hsbc.com. There is also a cost to accessing the DTCC portal. From 28 July 2014 the HSBC EMIR Delegated Reporting Service will be replaced by an online ePortal, hosted via HSBCnet.
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Unique Trade Identifier (UTI)

Query Answer
If I don’t want to use the Delegated Reporting Service, how do I agree the UTI approach with HSBC? Under EMIR, counterparties to a derivatives transaction are required to generate and agree unique trade identifiers, also known as a UTI, in respect of the derivative contracts to be reported, to allow Trade Repositories to pair and reconcile trades. You should have received a communication outlining the approach in relation to UTI generation for your trades with HSBC. If you have not received anything, please email emir.client.support@hsbc.com or contact your usual HSBC representative.
If I want to take advantage of the Delegated Reporting Service, does HSBC always need to generate a UTI for each trade? HSBC will always be the UTI generator for each trade reported via our Delegated Reporting Service.
How will HSBC be notifying me of the UTIs for each trade? Where HSBC is the UTI generator, we will notify you of such UTIs as per the usual trade confirmation process. If you are a subscriber to our Delegated Reporting Service, the UTI will also be included on the trade data within the Post Trade Portal when you have a reportable trade.
If you are the UTI generator (and therefore do not subscribe to our Delegated Reporting Service), you will need to notify HSBC of such UTI within one business day of its generation.
Can I have a different approach to generating UTIs per asset class for my future trades? For example, I would like to generate the UTI for my Commodities trades but I would like HSBC to generate the UTI for my FX Forward trades. Unfortunately this is not possible. You are only able to adopt one approach for your UTI generation and this applies across all asset classes.
If I choose Delegated Reporting Service for one asset class, but not for others, will I be obliged to have HSBC generate the UTI for my non-platform trades? Yes, you can only have one UTI preference across all asset classes, and Delegated Reporting Service obliges you to accept HSBC as the generator.
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Last updated: 5 January 2016