EU and US Regulatory Trade Reporting Adoption
The following article is a guest contribution from Regulatory and Operational Compliance Director of Abide Financial, Anthony Arnold.
Abide Financial, is a London based regulatory reporting provider at the forefront of transaction services innovation. In less than 5 years since its inception Abide Financial has become the 3rd largest reporting entity by EMIR reportable FX transactions and processes more than 22% of all MiFID reportable trades.
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[dropcap style=”square” font=”verdana”]O[/dropcap]ne of the voids for regulatory reporting standards is about to be filled as multiple EU and US reporting regimes adopt the ISO 20022 XML standard. The goal is to improve data access, data quality and to generate meaningful aggregate data from the millions of records being submitted under global regulatory regimes.
Currently, the ISO 20022 XML standard is most commonly used by financial institutions for payments and settlements but, as is evident below, it will soon break out of its traditional arena into the regulatory reporting space, impacting trade repositories (TRs), national competent authorities (NCAs), approved reporting mechanisms (ARMs) and, yes, reporting parties.
EMIR
Reporting parties (both Counterparties and delegated reporting providers and vendors) are reporting using their respective TR standard submission format, be that CSV or XML – those submission format standards are unlikely to change even when the new Technical Standards for EMIR reporting are adopted.
However, for data quality, and direct and immediate data access, TRs will soon implement ISO 20022 XML message formats to provide data to EU NCAs, European Securities and Markets Authority (ESMA) and ACER (REMIT data received from TRs). Abide Financial and other market participants recently provided responses to ESMA’s consultation on ‘Access, Aggregation and Comparison of TR Data’ and ESMA has published the response documents to the public