Getting A Full Report
Communication, collaboration and, above all, reporting, are becoming important aspects for any reference data management professional. That is evident in our stories this month, including ways the industry is responding to regulatory mandates, and how getting different parties in the industry to communicate and work together yields benefits that would not otherwise be possible.
European Market Infrastructure Regulation (EMIR), following its trade reporting requirements set in February, has two more deadlines for different forms of reporting—one imminent, on May 12, for open derivatives trades, and another on August 12 for collateral and valuation reporting, as covered in "Ready to Report?" After the shock the February deadline caused, it remains to be seen if the industry will be caught scrambling again on these next phases. Reporting planning includes more than just collecting data, including reconciling different systems, making choices about what currency to report under, and tracking valuations to report.
And in another region, Asia-Pacific, global initiatives such as the International Financial Reporting Standards (IFRS), Solvency II and Basel III are increasing demand for reporting more detailed data with greater frequency. Panelists at our Tokyo Financial Information Summit identified different reporting issues than Europe, such as transparency of valuation calculations, having adequate personnel resources to handle reporting, and watching out for regulatory arbitrage.
Reporting and communication issues get combined when it comes to Solvency II compliance, as the Investment Management Association’s Susan Wright says. Solvency II rules compel asset managers to share data with insurance clients. But that data can often be incomplete and unaudited, raising questions about how updated data will be communicated. Wright is pushing asset managers, insurers and third-party administrators to communicate with each other to get a clear and complete view of how to comply with Solvency II’s data demands.
On the collaboration front, DTCC and Euroclear are partnering to build two utilities intended to better collect and report data about margin calls and collateral, something that DTCC's Peter Axilrod says should benefit all market participants. And Swift's know-your-customer data utility increases in value by signing on Barclays as another contributor.
Collaboration also requires openness, and the adoption of Bloomberg’s Open Symbology as the basis for a new identifier, the Financial Instrument Global Identifier (FIGI) created by the Object Management Group (OMG) consortium, could accomplish the goal of having an open system to identify securities. If the OMG had chosen a proprietary standard on which to base FIGI, it might have had a lot more trouble getting it off the ground.
These examples of collaboration and new communication are the types of efforts needed to ensure that reporting of data is as complete and consistent as it possibly could be.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
Court case probes open-source licenses as movement stands at crossroads
The Software Freedom Conservancy’s lawsuit against TV-maker Vizio begins trial in California, raising questions about open-source licenses and the risks posed by adhering to them.
Waters Wavelength Podcast: Countdown to T+1
DTCC’s Val Wotton joins the podcast this week to discuss the impending move to T+1 in the US.
Consolidated tape hopefuls gear up for uncertain tender process
The bond tapes in the UK and EU are on track to be authorized in 2025. Prospective bidders for the role of provider must choose where to focus their efforts in anticipation of more regulatory clarity on the tender process.
Fighting FAIRR: Inside the bill aiming to keep AI and algos honest
The Financial Artificial Intelligence Risk Reduction Act seeks to fix a market abuse loophole by declaring that AI algorithms do not have brains.
Waters Wrap: The rise of AI washing… and regulation washing?
The SEC recently levied fines against two investment advisors over “AI washing”. Anthony takes issue with the announcement.
Prepare now for the inevitable: T+1 isn’t just a US challenge
The DTCC’s Val Wotton believes that firms around the globe should view North America’s move to T+1 as an opportunity—because it’s inevitable.
European firms prime for lopsided settlement in North America and at home
With T+1 imminent in North America and increasingly likely to traverse the Atlantic, operations and trading professionals in Europe are fighting on two fronts.
As crypto ETFs become reality, benchmark providers take center stage
The SEC’s approval of the first spot bitcoin ETFs will expose a growing number of traditional market participants to the maturing world of crypto data, a moment that some—such as CF Benchmarks, BlackRock’s benchmark provider—have been eagerly awaiting.
Most read
- Women in Technology & Data Awards 2024: All the winners and why they won
- Witad Awards 2024: Above and beyond award (vendor)—Susan Bennett, Tradeweb
- Fighting FAIRR: Inside the bill aiming to keep AI and algos honest