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S&P Global Market Intelligence Reviews Regulatory Reporting

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Resourcing and data quality management are the biggest barriers to effective, accurate and cost-effective transaction regulatory reporting, according to S&P Global Market Intelligence’s annual Global Regulatory Reporting Survey – but it’s not all bad news, with the report noting that financial markets are better prepared for regulatory changes coming in 2024 than in any previous period.

Conducted by S&P Global Market Intelligence Cappitech, the survey found less than half of respondents saying their firm is appropriately resourced. Data quality is also a challenge, with more than half identifying remediation of existing data as a key requirement and just 19% saying their data quality is ‘very high’.

Despite these results, Struan Lloyd, head of Cappitech at S&P Global Market Intelligence, comments: “Notable in this report is a shift in focus from simply hoping to meet regulatory requirements and deadlines, to a more focused and strategic view that encompasses multiple jurisdictions and a bottom-up approach to identifying resourcing and data quality challenges. This increased maturity will lead to better, more effective regulatory reporting that more closely meets regulators’ oversight and monitoring.”

Looking forward to regulatory change in 2024, the report finds Europe most advanced ahead of changes to European Market Infrastructure Regulation (EMIR), with 75% of firms prepared or on track ahead of an April 2024 deadline. Commodity Futures Trading Commission (CFTC) Phase 2 preparations notably improved on previous years with 60% of firms ready or on track. Firms reported preparations for Japan Financial Services Agency (JFSA), MAS (Monetary Authority of Singapore) and ASIC (Australian Securities and Investments Commission) regulations are progressing well.

The report also includes findings on a variety of factors influencing the regulatory reporting space including vendor selection, reconciliation and UTI matching and pairing challenges, and the use of automation and technology.

Research for the report was conducted in summer 2023 among 70 professionals across EMEA, UK, North America and APAC. Most represent banks or asset managers, with 30% working for other organisation types such as brokers, corporates and proprietary traders.

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