Global regulators have implemented a flurry of refits and rewrites in trade and transaction reporting over the past 12-18 months, focusing on both simplification and harmonization, but especially on the adoption of critical data elements.
While EMIR Refits stand out as one of the most talked about regulatory changes of recent years because of its size and scope, there were actually six major refits and rewrites for firms to navigate last year, as nearly every jurisdiction that mandates OTC derivatives reporting implemented revised rules – some of them even more than once. These global rule rewrites introduced significant changes including the adoption of harmonized data fields (CDE), standardized message formats (ISO 20022 XML) and the reporting of key reference data (including UPI).
DTCC played a critical role in helping over 5,000 clients comply with these various regulations, hosting over 100 working sessions to assist firms in navigating the complexities of the regulatory changes, running webinars on the more high-level issues, providing updates on the technology build and answering numerous questions to ensure compliance.
Building upon the success of 2024 and to further strengthen its offering to clients, DTCC recently announced plans to add a Markets in Financial Instruments Directive / Regulation (MiFID / R) ARM reporting service, subject to regulatory approval, alongside its Global Trade Repository (GTR) business, which will enable firms to fulfil their transaction reporting obligations under the regulation. Firms will benefit from ancillary services such as data quality analytics as well as smart tooling to assist with monitoring, controls and exception management. In addition, the anticipated new service will include a dedicated back-reporting channel with queuing and in-sequence processing to authorities as well as a suite of end-of-day reports to facilitate timely issue resolution.
As with past regulations, there will certainly be operational complexities once the MiFID III / MiFIR II regulation is introduced. The good news is that DTCC’s GTR, the only industry-owned and governed global provider of trade reporting services, will soon support the major reporting regulations from a single global platform.