Transactions and Trade Regulatory Reporting

Article

Transactions and Trade Regulatory Reporting

The implementation of the EMIR reporting, contrary to expectations, has probably been one of the most challenging reporting issues faced by market participants over the last years.

Executive Summary

Buy side and sell side financial participants, as well as corporate participants, have had to take on an additional operational burden mainly due to the unexpected complexity of transposing roughly 80 transaction fields into Trade Repositories on a daily basis.

The market players were not accustomed to these daily reporting obligations, which were further impeded by the grey area around key reporting fields. The possibility of delegating the reporting to sell side brokers was therefore welcomed by the buy side. However, for those using multiple brokers and venues, delegating the reporting is not a silver bullet for solving all reporting requirements.

Furthermore, in EMIR - contrary to the Dodd-Frank Act (DFA) - each counterparty remains responsible to their regulator for ensuring timely reporting and accuracy of the data. Accuracy still remains a key issue when it comes to EMIR, partly because of the poor quality of some of the basic data being reported - namely the ‘I’ trio, i.e. the LEI, UTI, UPI fields. These challenges explain most of the reconciliation issues and the difficulties faced by reporting entities.

PDF - 246 kb

Inside Magazine - Global edition 2016

Inside is Deloitte’s quarterly magazine offering an exclusive insight into best practices, trends and opportunities faced by our clients across all industries.

Inside focuses on the main hot topics relevant for the market (Asset management, Banking, Insurance, Public sector, Healthcare, Private equity, Real estate, TMT, Manufacturing and consumer business, Transport and logistics).

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