Industry Backdrop

Clearly the news that CME Group have both decided to wind down their regulatory reporting business in November 2020 is unwelcome news for those currently using their regulatory reporting services.  However, it does provide a great opportunity for firms to review their current EMIR and MiFIR reporting solutions, challenge implementation decisions and provide assurance that what is being reported is accurate and correct.

Why is this important?

There is regulatory obligation that firms must discharge to ensure your reports are accurate and complete.  Under MiFIR, RTS 22, Article 15(3) states that “Investment firms shall have arrangements in place to ensure that their transaction reports are complete and accurate”.  Similarly under EMIR, Article 9 (1e) states that “Counterparties and CCPs that are required to report the details of derivative contracts shall ensure that such details are reported correctly and without duplication”.

Opportunity to improve reporting quality

As impacted firms embark on an EMIR and/or MiFIR regulatory reporting transition project to identify, select and port to an alternate TR, ARM or service provider, there is a significant opportunity to review past implementation decisions; to ensure workflows are efficient and transparent, controls are robust, actors are well-defined and accountable, and reporting is 100% accurate and complete. Not just a technical review but an holistic reporting health check in line with industry best practices to provide assurance that what is being reported is accurate and correct.

Can Laurellis Associates Help?

Yes we can.  We provide a Reporting Assurance Service comprised of software tools and consultancy to test the accuracy and completeness of your EMIR and MiFIR trade and transaction reporting solutions, identify reporting issues and assist with root cause analysis, remediation and back-reporting.

• Accuracy Testing
  • Efficient and comprehensive software solution to test the accuracy of your trade and transaction reports
• Completeness Testing
  • Configurable software solution to compare your front-office records against your trade and transaction reports to validate your reporting logic and identify over, under and inaccurate reporting
• Professional Services
  • Consultancy/professional services to assist with root cause analysis and remediation, as well as support any back-reporting obligations to correct erroneous reports

Final Thoughts

Improved accuracy and completeness of your regulatory reporting obligations can be achieved by taking the opportunity that this transition presents to holistically review your reporting solutions and move from what might still be a tactical solution to a robust strategic transaction reporting solution with an assurance that what is being reported is accurate and correct.

Please contact us to discuss how our Reporting Assurance Service can ensure your regulatory reporting transition project includes the benefit of improving the quality of your regulatory reporting.