Perfectly reconcile transaction data for the entire regulatory submission process
Regulators require investment firms to conduct systematic reviews of their regulatory report submissions. This includes reconciling reports received by regulators to trade data.
We provide a three-way reconciliation solution to help firms with their compliance governance. Trade data is compared to transaction reports with line-by-line details of submissions to trades. Final XML reports received by the FCA reconciled to MiFIR submissions to comply with best practices of monitoring transaction reporting.
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What is regulatory reconciliation?
Regulatory reconciliation is the process of comparing front office transactions to those submitted to regulators and trade repositories under transaction reporting for accuracy and completeness of reporting. The review should include checks that all trades that are under scope are in fact reported, transactions out of scope aren’t being reported and that data received by regulators matches sent submissions.
Is trade/transaction reconciliation a requirement by the regulator?
Under MIFID II regulation, there is a requirement within RTS 22 Article 15 Clause 3: “Investment firms shall have arrangements in place to ensure that their transaction reports are complete and accurate. These arrangements shall include testing of their reporting process and regular reconciliation of their front-office trading records against data samples provided to them by their competent authorities to that effect.”
Other forms of transaction reporting regulation also include within their legislation requirements for firms to have in place processes for maintaining accuracy and timeliness of reports.
Why do we need to reconcile with the regulator’s data?
While comparing the number of transactions sent vs. the number of transaction accepted by the regulator, you can identify many reporting issues including identifying rejections or discovering records being missed.
What is a three-way reconciliation?
Three way reconciliation is a comparison between front office data, information sent to an ARM or service provider and reports collected by a trade repository or regulator.