Why on-hold procedures for regulatory reporting are important


With regulatory reporting being vital for every company, RegTech firm Point Nine has established an automated on-hold procedure to be activated in the event of any failure.

According to Point Nine, this measure helps to minimise risks and maintain the accuracy of reporting, making the firm a reliable partner in the challenging world of financial services.

With Point Nine, the automation of on-hold procedures ensures that trades and transactions are flagged automatically when a delay or error in reporting occurs. The system notifies clients of the on-hold status and gives them the option to either keep the trade on hold or force the reporting of the records. This streamlined process helps to mitigate risks and ensure compliance in the world of financial services.

The trade on-hold process calculates the next working day by country and automatically identifies trades that do not meet the T+1 reporting deadline and that these trades will be marked as on-hold, taking into consideration weekends and public holidays. The system will send daily notifications to the client regarding the status of the trade on hold until they will be ready to proceed.

Point Nine said, “In the event of a reporting delay, the first step of the on-hold procedure is to identify the cause of the issue. This could be due to a variety of reasons, such as a technical glitch in the system, a missing or incorrect data point, or an internal error within the organisation. By default, the on-hold process will not be active and can only be activated upon request.

The next phase in the on-hold procedure involves informing the relevant individuals or entities about the problem that has arisen. This can encompass regulators and other stakeholders who could be affected by the delay. Efficient and clear communication plays a vital role in ensuring that everyone is aware of the situation and can address any questions or concerns they may have.

The next step of the on-hold procedure is to take the necessary action to resolve the issue. This could involve correcting any errors or missing data points and updating the reporting system to resolve any technical issues. The goal is to get the on-hold trade back on track as soon as possible.

Point Nine explained, “We believe this tool will help clients manage their current obligation under MIFIR to notifiy their NCA of any delays or errors in their transaction reporting process by providing them with clear notifications of the impacted trades. Point Nine will also extend the provision of this tool to our clients so that they are able to comply with the notification to the NCA as required under EMIR REFIT.”

Point Nine concluded, “An effective on-hold procedure is a crucial aspect of any regulatory reporting process. By having a clear and well-defined process in place, organizations can minimize the impact of any reporting delays or errors and ensure that they are compliant with regulations. Whether dealing with clients, regulators, or internal stakeholders, clear and timely communication is key in ensuring that all parties are aware of the situation and that the necessary steps are taken to resolve the issue.”

Read the full post here.

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