ASIC’s OTC derivative transaction reporting rules allow reporting entities to delegate their reporting obligations to a third party, however, reporting entities are still required to:
- make regular enquiries of their reporting delegate to ensure that the provider continues to meet its obligations to report your trades (ASIC Reporting Rule 2.2.7); and
- take all reasonable steps to ensure the completeness, accuracy and currency of the information reported (ASIC Reporting Rule 2.2.6).
How Often Should You Make Enquiries?
ASIC advises that regular enquiries should be made into your reporting delegate, however they do not define what ‘regular’ is. ASIC’s Regulatory Guide 251 at 251.59 – 251.34 indicates that this should be determined by each entity and should be dependent on the number of transactions you enter into, modify or terminate. Our recommendations are that you confirm who within your organisation conducts this process and document each occasion it is performed.
How Does TRAction Help Its Clients Meet These Obligations?
TRAction has developed a simple system for clients to review and determine whether TRAction is meeting its obligations as a reporting delegate.
On a daily basis, TRAction provides its clients handback files which details the transactions which have been uploaded to the Australian Derivative Trade Repository (ADTR). These files are generated every day upon successful completion of transaction uploads to the TR and are returned daily to the secure portal.
You should ensure you:
- reconcile your raw data against the handback files (use the detailed guidance provided to you as part of TRAction onboarding process); and
- use the handback file you receive at the end of the month to cross check your monthly TRAction invoice.
With the process developed by TRAction above, regular enquiries into TRAction are easy and can occur frequently.
Feel free to contact us for further information or if you have any questions.