TRAction's Reporting Recap: August 2024
Stay ahead by exploring new regulatory reporting insights in TRAction’s Reporting Recap.
This month’s edition features:
Only one month left until UK EMIR Refit!
Starting 30 September 2024, there are significant changes to your reporting obligations in the UK under the EMIR regime, following similar changes under EU EMIR Refit earlier this year.
Do you and your firm need any assistance or guidance navigating these changes?
TRAction is here to help. Visit our website and stay up-to-date with our helpful resources, and don't hesitate to contact us for for further assistance.
9 Common XSD Errors in EMIR Refit
EMIR Refit introduced a major structural change with the move from CSV to XML file structure.
To assist with these changes, TRAction has compiled a helpful list of the 9 most common XSD errors and their causes.
XML uses an imbedded schema and validation system using XSD files. Essentially, when creating an EMIR Refit XML file, it is checked against a set of formatting and data rules in the XSD file. If your XML file doesn’t meet those rules, an error will appear.
Get your UK EMIR backloading done before 30 September 2024
UK EMIR Refit is just around the corner, coming into effect on 30 September 2024.
TRAction recommends that reporting entities should do any UK EMIR backloading before this date, otherwise they may have trouble getting old data to meet the UK EMIR Refit format. For more information, check out our article below.
If you would like further guidance navigating changes to your reporting obligations, reach out to us at TRAction.
Now live - Pairing and matching under EMIR Refit
EMIR Trade Repositories (TRs) have now started giving reporting entities feedback on their pairing and matching status in the form of an end of day report in respect of the new EMIR Refit.
Find out more about pairing and matching, the relevant fields they need to match, and the process undertaken by the LSEG Regulatory Reporting TR in TRAction's insightful new article below.
If you would like further assistance with pairing and matching, or any of the upcoming changes to your reporting requirements, don't hesitate to contact us at TRAction!
What ISIN to use when reporting rolling futures CFDs
Do you know which ISIN you should be using when reporting rolling futures CFDs? TRAction has created an insightful article to help you understand.
Rolling futures CFD contracts refer to a futures based CFD that doesn't have an expiry date, which is achieved by the underlying contract pricing moving to the next expiry equivalent contract. Find out which ISIN you need to use, who allocates them, and how it affects your trade reporting, with our article below
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How to do UTI Matching through oneZero
Under?EMIR Refit, the information stemming from the dual-sided reporting obligation must be reconciled via the pairing and matching of both legs of the derivative trade by trade repositories. The successful reconciliation of dual-sided reporting data:
Historically, pairing has been problematic. The graph below shows the results of ESMA paired open derivatives through 2020. Although the pairing rate has increased from around 40% to 53%, it is still very low considering that until EMIR Refit, successful pairing required counterparty agreement on only 3 fields.
ASIC Rewrite: Part 2 of the new requirements are now finalised
ASIC Rewrite has been finalised and is ready to go live in two parts:
The most significant changes include:
To find out more details on what to expect and how TRAction can support you in navigating these changes, check out our article below, and don't hesitate to contact us!
New Video: TRAction's Onboarding Process
Have you ever wondered what the process of onboarding is like with TRAction?
Dive into our new and insightful video guide that explains our streamlined process for onboarding new clients. We also address some frequently asked questions about onboarding, so be sure to watch for valuable insights that will guide you through your trade reporting journey with TRAction.
Media
UK Consumer Duty - FinanceFeeds speaks with TRAction's co-CEO, Sophie Gerber
The Consumer Duty introduced to the UK by the FCA has been in place for over one year now. FinanceFeeds has spoken with TRAction's co-CEO, Sophie Gerber and some other industry experts on what this looks like.
"Eventually consumers will start to push back against these regimes due to the restrictions it places on their choices and ability to manage their financial affairs.? In the FX/CFD space, the consumer response has already been that accounts are opened with firms in less regulated jurisdictions – aside from the regulatory risks to consumers in this choice, it also presents a significant loss of the economic benefits to the advanced economies as a whole such as tax revenue and local jobs.
Most of the global regulators have been actively switching from a disclosure regime to requiring more active screening of customer suitability by issuers.? This means that instead of requiring firms to properly outline the features and risks of their products as being sufficient for clients to make a decision, regulators expect firms to more actively screen customers as to whether a customer really should be acquiring their product.
We would hope that a more moderate middle ground position will eventually be found which continues to rely on the disclosure regime but implements other measures which allow firms to have tangible and easily understandable compliance requirements.”?
TradeInformer: A broker, a lawyer, and an LP walk into a bar
Traction's Co-CEO, Sophie Gerber , sat down with TradeInformer for an interview discussing the latest updates on UK EMIR Refit and ASIC/MAS rewrites to navigating the evolving regulatory landscape.
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