About a-team Marketing Services
The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Bracing for More Change in Trade Reporting

Subscribe to our newsletter

By Mark Steadman, Executive Director, Head of DTCC Report Hub Services.

In the wake of the 2008 financial crisis, regulations governing the reporting of transactions across key asset classes have been implemented in major jurisdictions around the world. This complex thicket of rules is set to become even more complicated and costly for firms’ as the regulators work to revise their reporting requirements for derivatives trade reporting.

In this next wave of updates for trade reporting, regulations are expected to become more prescriptive, forcing firms to revisit and retool systems they put in place just a few years ago. For instance, jurisdictions may mandate the use of the ISO 20022 messaging standard for all trade reporting. In Europe, the European Securities Markets Association (ESMA) is extending the use of the ISO 20022 XML message scheme under the EMIR Refit of its European Market Infrastructure Regulation.

Observers expect the US Commodities Futures Trading Commission (CFTC) to do the same in a ‘Round 2’ re-write of its trade-reporting rules, followed by regulators in the APAC region, which are expected to issue their own re-writes in 2022 / 2023. Harmonization initiatives now underway between the CFTC and ESMA, while a welcome move to reduce discrepancies in trade reporting rules, may nevertheless force disruptive and expensive overhauls to firms’ reporting compliance infrastructure and operations.

Faced with this wave of changes, firms need a solution that helps manage all the latest pre- and post-trade reporting functions across jurisdictions. The DTCC Report Hub® platform is designed to do just that.

A solution to help manage trade reporting

Since the start of mandatory trade reporting in 2011, compliance with reporting requirements has been challenging and expensive. The in-house expertise required to design and implement a comprehensive reporting compliance program is in short supply. At the same time, individual jurisdictions’ rules and requirements keep changing. As a result, firms are spending a lot of time and money on updates to internal systems and processes that bring little in the way of competitive differentiation.

Leveraging a comprehensive pre and post trade reporting solution would help alleviate this burden. DTCC built DTCC Report Hub to perform the numerous pre and post reporting tasks that comprise a significant portion of firms’ overall trade reporting responsibilities. The platform is a highly efficient pre and post trade reporting solution that can help firms manage the complexities of meeting multiple regulatory mandates across jurisdictions. With comprehensive reporting regime coverage, the service can help firms mitigate compliance risks, enhance operational efficiencies, and drive down costs.

Prepare for the coming changes

As a comprehensive pre- and post-trade reporting service, DTCC Report Hub provides a solution for many financial institutions’ pre- and post-trade reporting needs – which is more important than ever as firms prepare to manage the coming flood of regulatory changes in the trade reporting space.

DTCC Report Hub’s robust functionality lets users choose from a wide range of features. Its pre-reporting module provides a comprehensive set of capabilities to prepare transaction data for successful submission to a trade repository (TR) or Approved Reporting Mechanism (ARM), including transformation of data from internal formats to the new ISO 20022 messaging standard. The module also includes data enrichment, automated Unique Trade Identifier (UTI) generation and exception management with a full audit trail.

DTCC Report Hub interfaces with TRs and ARMs to facilitate trade report submissions, and after transactions have been submitted, its post-reporting module let firms check for reporting accuracy and completeness and gain compliance insights through summary reports.

With large-scale changes to reporting rules on the horizon, now is an ideal time to harness the power of DTCC Report Hub to help your firm meet its reporting compliance challenges.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: FRTB: What still needs to be done before the global deadline of January 2023?

While implementation of Fundamental Review of the Trading Book (FRTB) regulation has been delayed twice for reasons first of complexity and second of the coronavirus pandemic, the final deadline of January 1, 2023 is less than a year away. For banks in scope of the regulation, the time to put necessary risk infrastructure and data...

BLOG

Everything You Need to Know About the EU Whistleblowing Directive

It is widely acknowledged that employees who report misconduct within their organisations play a key role in exposing breaches and preventing similar incidents from happening in the future. However, potential whistleblowers are often discouraged from reporting their concerns or suspicions for fear of retaliation. In this context, the European Union deemed it necessary to provide...

EVENT

ESG Insight Briefing New York (Redirected)

The briefing will explore challenges around assembling and evaluating ESG data, how to apply new technologies to improve data quality and insight and the impact of regulatory measures on standardisation efforts.

GUIDE

ESG Data Handbook 2022

The ESG landscape is changing faster than anyone could have imagined even five years ago. With tens of trillions of dollars expected to have been committed to sustainable assets by the end of the decade, it’s never been more important for financial institutions of all sizes to stay abreast of changes in the ESG data...