The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

UK FSA Confirms Data Format of Reports for Derivatives on Regulated Markets

Share article

The deadlines may have slipped but the UK Financial Services Authority (FSA) has released more details surrounding the formats required for its new Alternative Instrument Identifier (AII) transaction reporting regime. The regulator last week released a new document aimed at confirming the way in which transactions in reportable securities derivatives admitted to trading on a regulated market should be reported by approved reporting mechanisms (ARMs).

According to the FSA document, transaction reports should contain all mandatory fields in line with SUP17Annex 1 Minimum Content of a Transaction Report. The report describes in detail the completion of specific fields in certain formats and provides guidelines for compliance with the regime. It has provided this information in order to reduce the number of requests for clarification from firms regarding the changes and also to reduce the resources that firms would otherwise need to dedicate to those enquiries, says the FSA.

As noted two weeks ago, the FSA has delayed the introduction of the new regime until “early” February 2010 as a result of implementation difficulties in rolling out its system for processing these reports. Given that even the FSA has been struggling with altering its systems to accept the new AII formats, it doesn’t bode well for the rest of the market to get on board. Market participants will need this additional time in order to ensure that end to end testing is completed prior to launch. After all, the FSA has previously stated that it is worried that rushing implementation could adversely impact the quality of these transaction reports.

The Committee of European Securities Regulators (CESR) had originally wanted each competent authority (CA) to collect this information and share relevant reports with other CAs by November 2008, one year after MiFID went live. However, the FSA and ARMs have found the practical reality of implementation is much harder than first thought. This is why the FSA has been compelled to provide a high level of guidance with regards to individual field population: to give as much support as possible prior to the February deadline.

Other measures that the regulator has introduced are a new AII Working Group made up of representatives from the industry, ARMs and trade bodies to discuss the issues around implementation. The FSA has also hosted transaction reporting technical forums with the ARMs on a fortnightly or monthly basis since April.

The document itself provides examples of particular instances of reports in order to illustrate the practical implementation of the AII codes. If you would like to read the full details of the paper, it is available to download here.

Related content

WEBINAR

Recorded Webinar: Best Practices for Integrated Regulatory Reporting Across Multiple Jurisdictions

The regulatory reporting obligations of financial institutions have mushroomed in scale over the past decade, leaving firms facing a raft of different requirements to provide increasingly granular metrics on their transaction, valuation and collateral data to a number of regulatory authorities. While many of these reports draw from the same core data set, the nuanced differences...

BLOG

COVID 19: Services Directory

As the coronavirus crisis extends into the medium to long-term, technology vendors and solutions providers are stepping up to the plate with a wide variety of services and support for clients to assist them through the data management challenges presented by the new operational and working environment. Below, you can find these collated into an...

EVENT

RegTech Summit Virtual

Regtech Summit Virtual will explore how business and operating models have adapted post COVID and how RegTech can provide agile and enhanced compliance for managing an evolving risk and compliance landscape. As the dust settles, we will look at the outlook for the global RegTech industry, where Regulators are focusing as they get back to business, and deep dive into global regulatory priorities for the rest of the year and into 2021.

GUIDE

Regulatory Data Handbook 2020/2021 – Eighth Edition

This eighth edition of A-Team Group’s Regulatory Data Handbook is a ‘must-have’ for capital markets participants during this period of unprecedented change. Available free of charge, it profiles every regulation that impacts capital markets data management practices giving you: A detailed overview of each regulation with key dates, data and data management implications, links to...