RegTech firm eFlow Global recently took the opportunity to describe how it can provide solutions to key transaction reporting concerns.
In the latest instalment of the Market Watch newsletter, the FCA draws attention to the persistent challenges financial firms face when striving for accurate transaction reporting. Complex regulations are at the heart of these issues, resulting in reporting errors and oversights that trouble many firms.
Reconciliation is a significant challenge. Firms are not up to par when it comes to ensuring the accuracy of their data. The FCA, in their review, remarked on certain firms that haven’t been proactive in their regular data extract requests. Under Article 15(3) of RTS 22, the necessity to harmonise front-office records with data samples from the FCA is paramount. Eflow Global offers a way out with their transaction reporting tool. This solution ensures a seamless three-way reconciliation of trade data, from the source (trading system) to the intermediary (ARM/TR) and then to the NCA.
Another troubling area is Breach Notifications. The common issues include incorrect report resubmission, failure to cancel erroneous reports, and the lack of a detailed audit trail of errors and their resolutions. The FCA points out the requirements under Article 26(7) of UK MiFIR. Eflow Global has addressed these issues with features like field-by-field error handling, automatic report adjustments, and note-taking functionality ensuring complete transparency and compliance.
The need to clearly identify Investment and Execution Decision Makers also stands out. Eflow Global ensures clarity during the onboarding process by providing clients with a comprehensive team of data and business analysts. This team crafts a specific tradeflow based on the client’s trading activities, ensuring transparent identification in the transaction report.
Inaccurate Reporting of Complex Trades is yet another hurdle. The FCA has identified discrepancies in the reports of such trades. Eflow Global’s solution? A comprehensive onboarding and analysis procedure, ensuring clarity on reportable elements of each complex trade.
The inconsistency in Price and Quantity Notations is also a concern. Eflow Global addresses this through integrated market data and a thorough understanding of client requirements, ensuring accurate transaction reporting.
Maintaining consistent Reporting Instrument Details remains a challenge with issues like unreported expiry dates and inconsistent CFI codes. Eflow Global’s tool cross-references all records against the FIRDS register for eligibility.
Lastly, Late Reporting is a consistent issue. The FCA emphasises the requirements under Article 2 of RTS 23. Eflow Global’s solution promotes automatic submission, negating the need for manual intervention, ensuring punctuality and compliance.
Read the full post here.
Copyright © 2023 RegTech Analyst
Copyright © 2018 RegTech Analyst
