The upcoming deadlines for applying changes to EMIR reporting for both the EU and the UK are fast approaching, with the EU’s date set for April 29, 2024, and the UK’s for September 30, 2024. Given these looming deadlines, Map FinTech has outlined what firms need to know.
The EU’s Implementing Technical Standards and the UK’s EMIR Technical Standards stipulate that the details of a derivative contract under EMIR REFIT should be reported using a standardised XML (Extensible Markup Language) template that follows the ISO 20022 standard. As clarified by the regulators, the purpose of this requirement is to enhance data quality and consistency, lower data integrity risks, and make data utilisation more manageable for regulatory supervision and economic analysis by decreasing the necessity for data cleaning and normalisation.
However, the implementation of this XML methodology and working with XML files carry certain intricacies that reporting entities must thoroughly contemplate. The complexities include the advanced XML file structure, larger size compared to CSV files, the high computational resources needed for parsing, the time-consuming and error-prone manual editing, and the investment in time and financial resources to acquire and maintain the expertise in XML methodology.
It is crucial at this juncture for companies to carry out an internal evaluation to determine how they will effectively meet the new reporting requirement of adopting the ISO 20022 XML methodology. Moreover, it is of the utmost importance that they carefully consider the aforementioned challenges before making any decisions, ensuring they make informed choices for successful compliance.
MAP FinTech, with its extensive expertise in XML methodology and a track record of successfully submitting millions of transactions using this methodology for similar regulatory reporting frameworks such as EMIR, SFTR, MiFIR, and others, is well-equipped to assist in this transition.
MAP FinTech’s Polaris reporting platform offers clients the flexibility of supplying CSV files, which are then converted into the required XML format per the regulatory mandate before submission to the Trade Repositories (TRs). When receiving feedback files from the TRs, which may be in XML or other formats, Polaris converts these into a more user-friendly format. However, it is important to note that the original XML inbound and outbound files will always be available to the reporting entity through Polaris.
Partnering with MAP FinTech enables reporting entities to confidently navigate the regulatory landscape and focus on their core business operations. Our expert team stands ready to assist with any questions or clarifications.
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