Time is running out for ASIC regulated firms
Under the new ASIC Rules on trade reporting, which began on 21 October 2024, there is a 6 month transition period provided to reporting entities.
Reportable trades that were entered into on or before 20 October 2024 with an expiry beyond 20 October 2025 (but have not been terminated on or before 20 April 2025), need to be re-reported or in other words, ‘uplifted’. This means that impacted transactions need to be re-reported to include the new requirements as set out under the ASIC Rules. These changes include LEIs, UTIs, UPIs and other additional data fields.
Re-reporting or uplifting of impacted trades needs to be done by 20 April 2025. TRAction provides more detail and examples on how to deal with impacted trades below.
Which trades need to be re-reported?
Re-reporting under ASIC only applies in respect of trades where both of the below apply:
- The trade was entered into on or before 20 October 2024; and
- The trade has an expiry beyond 20 October 2025.
What the action type would be used for re-reporting?
- MODI-UPDT – ‘Update’ – is where the action type is ‘MODI’ and the event type is ‘UPDT’ which is essentially for the updating/re-reporting of a legacy trade.
- MODI – ‘Modify’ – is for a reportable data field that was not previously reported before but needs updating.
Note for collateral, it is slightly different.
Timing of the re-reporting?
If the transaction has not been terminated on or before 21 April 2025, being the last day of the 6 month transition period, reporting entities must make a change report (i.e. re-report for their impacted trade by 20 April 2025 (see Rule 2.4.1 of the ASIC Rules).
Example of when to re-report
See the below table as to how you should re-report a transaction entered into on or before 20 October 2024 according to when the termination of the trade will occur.
| Termination Date | Detail | Re-report as MODI? | Last day of submission of MODI |
|---|---|---|---|
| On or before 20 April 2025 (Sunday) | Derivative that has been terminated on or before 20 April 2025. | No | Not applicable. |
| On or after 21 April 2025 (Monday) | Derivative that has not been terminated on or before 20 April 2025, but has been terminated after 21 April 2025. | Yes | 20 April 2025 |
For example, if your trade has the following details:
- you have entered into a reportable trade e.g. an FX forward;
- the date of execution of the transaction was on 19 October 2024;
- the transaction has a 24 month maturity date – i.e. it expires on 19 October 2026 (and therefore is an expiry date on or beyond 20 October 2025); and
- the trade was terminated on 25 April 2025,
Follow the instructions for ‘on or after 21 April 2025’ from the table above.
However, if the same transaction above occurred with a termination date being 10 April 2025, then you would need to look at the second row in the table above.
Other things to consider
- Any termination of a re-reportable trade should be reported within 2 business days of being terminated. Updates or variations to re-reportable contracts must also be reported within the same timeframe.
- Trades do not need to be updated in relation to collateral and valuation as reports of daily collateral and valuation updates during the transition period would naturally occur. However, re-reporting the details of a trade is required if it is about changes to any of its contract terms.
- For terminated or matured trades during the transition period, reports do not need to be submitted with ‘Update’ as the event type if no reportable changes occurred to the trade i.e. no updating or re-reporting is required for these.
- All outstanding derivatives are to be updated (trade and position level reporting).
- Re-reporting an ‘interim’ UTI as a permanent UTI.
What next?
If you are:
- An ongoing client of TRAction – we will perform the updates required on your behalf. If we need additional data from you such as the UPIs, we will reach out to you shortly. Although under the ASIC Rules, there is no requirement for the matching of UPIs, it would be good in TRAction’s view if UPIs did actually match. Please refer to our article here for more information on the matching of UPIs.
- Former one-off client of TRAction – please contact us and instruct us to update the affected transactions that we previously reported on your behalf so you can be compliant with the updated regulations.
- Non-TRAction client and doing the trade reporting yourself or through another entity, follow the below steps:
- Check that your current trades entered into on or after 21 October 2024, are compliant with the new ASIC Rules. If there are any breaches, these need to be reported to ASIC.
- Consider and identify the transactions entered into before 21 October 2024 which require updating along with the details that need to be changed.
- Submit reports by the deadlines as mentioned in the table above.
How can TRAction assist?
If your affected trades need updating, please get in touch with us. After instructions are received, we will assist in updating your pre-21 October 2024 dated reportable trades and re-submitting the changes to your trade repository.
For new clients, TRAction will update all reportable transactions so they are compliant with ASIC requirements for no extra fee given this is included in our service arrangement.
For existing TRAction clients and also reporting entities with one-off transactions, we can update your impacted transactions.
For more information on any updates to other trade reporting regulations around the world, please see our website here and do not hesitate to ask us any questions.
