TRAction Fintech - Regulatory Reporting Services for Financial Institutions

TRAction exists to make it easy and cost effective for you to report transactions and positions across all asset classes. With built-in reconciliation and monitoring capabilities, we help you to comply with MiFIR, EMIR, Best Execution, ASIC, MAS and other regulatory reporting obligations. TRAction is a provider of regulatory trade reporting solutions to financial services businesses dealing in OTC derivatives and other financial products which require transaction reporting. 

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Europe (EMIR / MiFID II)

What are EMIR and MiFIR/ MiFID II?

Australia (ASIC)

What is ASIC?

Australian entities dealing in OTC derivatives are required to report transactions to an Australian Derivatives Trade Repository (“ADTR”) licensed by the Australian Securities and Investments Commission (“ASIC”).

Under ASIC’s Derivative Transaction Rules (Reporting) 2013 (“ASIC’s Rules”), Australian issuers of OTC derivatives need to report their reportable transactions.

ASIC’s Rules provide a framework for the regulation of OTC derivatives reporting, clearing and trade execution.

Best Execution

What is Best Execution?

Best Execution is embedded in Article 27 of MiFID II which requires investment entities to provide the most favorable terms for the execution of client orders.
 
Execution venues including trading venues, systematic internalisers, market makers, liquidity providers (RTS 27 reports) and investment firms (including CFD/ FX brokers) who execute client orders through execution venues (RTS 28 reports) are required to report. 
 
TRAction has developed a solution to help you to comply with the Best Execution reporting requirements under MiFID II.
Global Reporting

Singapore - MAS

The Monetary Authority of Singapore (MAS) requires parties to a Specified Derivatives Contract (SDC) to report to a licensed trade repository or licensed foreign trade repository.

 

Hong Kong - HKMA

The Hong Kong Monetary Authority (HKMA) requires specified OTC derivative transactions to be reported to HKTR.

HKMA reporting obligations in relation to retail OTC Derivatives commenced on 1 July 2017.

Financial entities that deal in interest rate swaps and non-deliverable forwards should already be meeting their reporting obligations under HKMA.

What are EMIR and MiFIR/ MiFID II?

What is ASIC?

Australian entities dealing in OTC derivatives are required to report transactions to an Australian Derivatives Trade Repository (“ADTR”) licensed by the Australian Securities and Investments Commission (“ASIC”).

Under ASIC’s Derivative Transaction Rules (Reporting) 2013 (“ASIC’s Rules”), Australian issuers of OTC derivatives need to report their reportable transactions.

ASIC’s Rules provide a framework for the regulation of OTC derivatives reporting, clearing and trade execution.

What is Best Execution?

Best Execution is embedded in Article 27 of MiFID II which requires investment entities to provide the most favorable terms for the execution of client orders.
 
Execution venues including trading venues, systematic internalisers, market makers, liquidity providers (RTS 27 reports) and investment firms (including CFD/ FX brokers) who execute client orders through execution venues (RTS 28 reports) are required to report. 
 
TRAction has developed a solution to help you to comply with the Best Execution reporting requirements under MiFID II.

Singapore - MAS

The Monetary Authority of Singapore (MAS) requires parties to a Specified Derivatives Contract (SDC) to report to a licensed trade repository or licensed foreign trade repository.

 

Hong Kong - HKMA

The Hong Kong Monetary Authority (HKMA) requires specified OTC derivative transactions to be reported to HKTR.

HKMA reporting obligations in relation to retail OTC Derivatives commenced on 1 July 2017.

Financial entities that deal in interest rate swaps and non-deliverable forwards should already be meeting their reporting obligations under HKMA.

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TRAction Fintech

Regulatory Reporting Services for Financial Institutions. TRAction exists to make it easy and cost effective for you to report transactions and positions across all asset classes.

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From the Blog

The clock is ticking – some ASIC LEI relief expires this month

There are 3 forms of LEI relief available for firms to rely on, depending on the client or counterparty’s location.    As a general rule, you must report your client’s or counterparty’s LEI unless your situation falls under one of these exceptions and you meet respective conditions of that exemption as set out in this article. Relief 1 – where your client is an Australian entity or a foreign entity acting through its Australian branch Upon the expiry of previo...

TRAction Fintech

Regulatory Reporting Services for Financial Institutions. TRAction exists to make it easy and cost effective for you to report transactions and positions across all asset classes.

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about us

The Team

Quinn Perrott

Co-CEO

Quinn is co-CEO and founder of TRAction focuses on assisting clients in Europe, Asia and Australia to meet their regulatory requirements with trade and transaction reporting solutions as well as development of the best execution platform.

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Sophie Gerber

Co-CEO

Sophie works in our Sydney office. She is co-CEO and founder of TRAction and focuses on assisting clients in Australia, Europe and Asia to meet their regulatory requirements with trade and transaction reporting solutions as well as development of the best execution platform.

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Emma Ladlow

Regulatory Reporting Manager

Emma works in our Sydney office. At TRAction, she works on implementing changes to regulations, improving and expanding our regulatory reporting services and helping with new business initiatives.

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Martin Kloosterman

Head of Operations

Martin works in our Sydney office. At TRAction, he assists our clients with data extraction, conversion and enrichment.

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Justin Blake

Senior Developer

Justin works in our Sydney office. At TRAction, he assists our clients in establishing and maintaining methods of fulfilling their reporting requirements as smoothly as possible.

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Nahid Tahmasebi

Developer

Nahid works in our Sydney office. At TRAction, she works on implementation and maintenance of data operations tasks.

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Leo Li

Developer

Leo works in our Sydney office. At TRAction, he assists our clients with data extraction and processing.

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Russell Nethercot

Relationship Manager

Russell works in our London office. At TRAction, he provides operational support to the processing team alongside working on developing new relationships and improving the experience for existing clients.

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Tom Flack

Transaction Reporting Officer

Tom works in our London office. At TRAction, he ensures all transaction reporting for our European clients, for both EMIR and MiFIR, is completed in accordance with regulatory requirements.

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Jasleen Kaur

Customer Support Officer

Jasleen works in our Sydney office. At TRAction, she is responsible for daily processing of client data and liaising with them to ensure this runs smoothly.

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Angela Yang

Client Engagement Manager & Legal Counsel

Angela works in our Sydney office. At TRAction Fintech, she provides regulatory support to our clients, monitors worldwide regulatory changes relating to trade and transaction reporting, and assists with business development and client onboarding.

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Mariana Trindade

Administration Assistant

Mariana works in our Sydney office. At TRAction, she assists with all marketing, finance and general administration as well as office management.

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Know More

Information

Information on specified transactions in financial instruments is required to be reported to regulators in many regions around the world.  Compliance with trade reporting regimes can result in costs and resource expenditure for firms. TRAction Fintech was founded to reduce the compliance burden by taking care of your trade reporting.

The requirements vary by jurisdiction and the following information may need to be reported:

  • The type of financial instrument (e.g. derivative, bond)
  • The counterparties to the trade
  • Any intra-day modifications
  • Legal Entity Identifier (“LEI”) and transaction and product identifiers

The data needs to be reported to the relevant regulator through a Trade Repository (“TR”) or other body nominated by the regulator.

The Objectives of Trade Reporting Requirements for OTC derivatives

The overarching objectives of the regulatory trade reporting requirements for financial products are to:

  • Enhance the transparency of trade information available to relevant authorities and the public.
  • Promote financial stability.
  • Support the detection and prevention of market abuse.

The Markets in Financial Instruments Directive (“MiFID II”) and its related regulation the Markets in Financial Instruments Regulation (“MiFIR”) is European legislation which covers reporting requirements for monitoring and market abuse purposes.  The reporting regime in MiFIR effectively covers many financial instrument transactions in Europe.  MiFIR requires transactions to be reported to an Approved Reporting Mechanism (“ARM”) and has 65 information fields which need to be populated.

The European Market Infrastructure Regulation (“EMIR”) is a separate regulatory regime requiring reporting of information related to derivatives trades. It has applied since early 2013 and requires reporting for financial system risk reduction purposes.  Some of the requirements are different to those contained in MiFID II/MiFIR and the reports are sent to ESMA approved TRs.  However, parts of the requirements overlap, making it possible to seamlessly report trades for both MiFIR and EMIR.

OTC derivative information is reportable under the Derivative Transaction Rules (Reporting) 2013 to a Trade Repository that is licensed in Australia as an Australian Derivative Trade Repository (“ADTR”).  The entities that are required to report include foreign entities with branches and subsidiaries in Australia.  In the case of hedge trades, relief may be available where the hedging counterparty is reporting.

The Monetary Authority of Singapore (“MAS”) requires parties to a Specified Derivatives Contract (“SDC”) to report to a licensed Trade Repository or licensed foreign Trade Repository.

Currently, only interest rate, credit and foreign exchange derivatives contracts are required to be reported to a licensed TR in Singapore and only when traded by certain entities.  Equity and commodity derivatives are expected to be reportable from 1 October 2018.

Global commitment to derivatives reform arose out of the Global Financial Crisis (“GFC”) in 2008.  The GFC highlighted structural deficiencies in the global derivatives markets and the systemic risk that those deficiencies posed to wider financial markets and the real economy.

In the lead-up to the GFC, those structural deficiencies contributed to the build-up of large counterparty exposures for which the risks were not appropriately managed.  With details of derivative transactions generally held only between the counterparties, in many cases those exposures were not transparent to other market participants and regulators.

The regulatory response, in the form of commitments by regulators around the world to implement derivatives reform, was made at the Group of Twenty (“G20”) Summit in Pittsburgh in 2009.  Since then, transaction reporting regimes have been introduced in multiple jurisdictions and are continuing to be amended and updated.

Trade Reporting Regimes

Information on specified transactions in financial instruments is required to be reported to regulators in many regions around the world.  Compliance with trade reporting regimes can result in costs and resource expenditure for firms. TRAction Fintech was founded to reduce the compliance burden by taking care of your trade reporting.

The requirements vary by jurisdiction and the following information may need to be reported:

  • The type of financial instrument (e.g. derivative, bond)
  • The counterparties to the trade
  • Any intra-day modifications
  • Legal Entity Identifier (“LEI”) and transaction and product identifiers

The data needs to be reported to the relevant regulator through a Trade Repository (“TR”) or other body nominated by the regulator.

The Objectives of Trade Reporting Requirements for OTC derivatives

The overarching objectives of the regulatory trade reporting requirements for financial products are to:

  • Enhance the transparency of trade information available to relevant authorities and the public.
  • Promote financial stability.
  • Support the detection and prevention of market abuse.
Europe - MiFIR and EMIR

The Markets in Financial Instruments Directive (“MiFID II”) and its related regulation the Markets in Financial Instruments Regulation (“MiFIR”) is European legislation which covers reporting requirements for monitoring and market abuse purposes.  The reporting regime in MiFIR effectively covers many financial instrument transactions in Europe.  MiFIR requires transactions to be reported to an Approved Reporting Mechanism (“ARM”) and has 65 information fields which need to be populated.

The European Market Infrastructure Regulation (“EMIR”) is a separate regulatory regime requiring reporting of information related to derivatives trades. It has applied since early 2013 and requires reporting for financial system risk reduction purposes.  Some of the requirements are different to those contained in MiFID II/MiFIR and the reports are sent to ESMA approved TRs.  However, parts of the requirements overlap, making it possible to seamlessly report trades for both MiFIR and EMIR.

Australia – ASIC

OTC derivative information is reportable under the Derivative Transaction Rules (Reporting) 2013 to a Trade Repository that is licensed in Australia as an Australian Derivative Trade Repository (“ADTR”).  The entities that are required to report include foreign entities with branches and subsidiaries in Australia.  In the case of hedge trades, relief may be available where the hedging counterparty is reporting.

Singapore – MAS

The Monetary Authority of Singapore (“MAS”) requires parties to a Specified Derivatives Contract (“SDC”) to report to a licensed Trade Repository or licensed foreign Trade Repository.

Currently, only interest rate, credit and foreign exchange derivatives contracts are required to be reported to a licensed TR in Singapore and only when traded by certain entities.  Equity and commodity derivatives are expected to be reportable from 1 October 2018.