Why Consolidate your Regulatory Reporting Now?

Even with Brexit, Covid and the Global economy under pressure, now could be a great time to consolidate your regulatory reporting. Brexit and Covid have created the perfect environment for you to consolidate your regulatory reporting because Brexit and Covid have forced regulators to be more lenient with market participants. Brexit has affected and will affect UK and European economies however this has been overshadowed by the weakening of Global economies from the COVID pandemic. Add all of these events together and you have an environment that is ripe for regulatory reporting consolidation.

The CFTC by providing temporary no action relief (holding off on fines) for all market participants until 27th January 2022 and ESMA delaying the latest EMIR validation rule changes for five weeks from 1st February to 5th March 2021 due to the complexities and multitude of issues surrounding Brexit prove that now is a great time to look at your cross jurisdictional regulatory reporting strategy updated.

Along with regulatory reporting changes such as EMIR Refit and the suggestion that there could be a Mifid 2.5 or Mifid 3 (a complete re-write) coming up in the not too distant future, the benefits of consolidating your regulatory reporting are numerous. With the constant change in regulations including rules, validations who is in scope and with the changes in the market actors such as trade repositories (CME closing for example) using an experienced provider to handle your regulatory reporting is really important because this means you do not need to analyse cater for all the development changes required by these regulatory reporting changes. Your regulatory reporting provider will handle these for you and ensure the required changes are completed in time according to the regulators deadlines.

With the Regulatory updates you do not need to use internal resources or costly external consultants to handle the development changes and testing. Consolidating all your regulatory reporting under one provider also simplifies exception management, oversights and controls processes and makes it easy to create comprehensive MIS reports for Senior Management.  Having one solution for cross Jurisdictional reporting means a single streamlined user-friendly exception management dashboard which enables you reg ops teams to learn and support the systems quickly and easily. In this cost sensitive environment consolidating your regulatory reporting makes a lot of financial sense.

A regulatory reporting provider who is agnostic to the reporting endpoints such as ARMs, APA’s or TR’s is a huge benefit to yourself because this simplifies the move when a TR or ARM ceases to provide the required services you originally signed up for. We will make it easy for you to switch to any ARM, APA or TR.

You will also benefit from using a provider that can educate you in how the majority of market participants are reporting and what the common market themes or discussions are which capture any regulatory changes or changes in market behavior. There is a huge benefit in using a reporting provider that is close to all the industry working groups, ISLA, ICMA, ISDA, AFME to name but a few and especially all the regulators and national competent authorities.

There is a huge strength in being part of a large community rather than being alone in the vast regulatory reporting landscape.



Gavin Marcus
About the author: Gavin Marcus
Gavin Marcus 20+ years Financial Markets experience. Working with Financial Regulations since 2007. Currently Head of Global Regulatory Reporting Sales Americas - S&P Global Marketing Intelligence Cappitech. Specialising in Selling Global Regulatory Trade and Transaction Reporting services. Prior to Cappitech Gavin was a Sales consultant for Trax / MarketAxess focusing on Regulatory Reporting Trade and Transaction Reporting Solutions.