A Guide to Surviving the Tightening of Global Regulation – Sign up for the London Finance Magnates Summit

Hear Sophie Gerber speak at Finance Magnates in London. With the proliferation of start-ups looking to enter into the financial services markets in established jurisdictions, oftenwith the purpose of obtaining a licence which they can flaunt elsewhere, regulators are tightening the screws on who they will approve and who they will let stay in the market. In this session we’ll discuss the how you can get a licence, and how you can keep the one you have. On top of this, we’ll also look at licensing strategies that can be implemented to protect your business from the wrath of regulators to ensure your business can keep functioning without the threat of being completely shut down.

TRAction provides financial and regulatory technology services specialising in regulatory trade and transaction reporting across Europe and Asia Pacific. Find out the list of reporting regimes we cover here.

As a delegated service provider, TRAction acts as an intermediary between regulated financial firms and licensed Derivative Trade Repositories/Approved Reporting Mechanisms. We simplify and improve our clients’ reporting process by investing in R&D and innovative products to improve their trade reporting process.

EMIR and MiFIR are separate regulatory regimes in Europe. Who do they apply to?

EMIR applies to any entity established in the European Union (“EU”) that has entered into a derivative contract, and applies indirectly to non-EU counterparties trading with EU parties.

MiFID II/MiFIR imposes transaction reporting obligations in respect of specified transactions in financial instruments where the underlying instrument is traded on a European Economic Area (“EEA”) trading venue.

ASIC trade reporting is governed by the Reporting Rules 2013 which provides a framework for the regulation of OTC derivatives reporting, clearing and trade execution. All Australian entities dealing in OTC derivatives are required to report transactions to an Australian Derivatives Trade Repository (ADTR) licensed by the ASIC. In terms of any specific reporting requirements and what your obligations are, we've covered all for you here.

MAS reporting requires the parties to a Specified Derivatives Contract (SDC) to report to a licensed trade repository or licensed foreign trade repository. For non-bank financial institutions and significant derivatives holders, the reporting obligations cover:

Currently - interest rate derivative contracts & credit derivative contracts only

From 1 October 2021 - expand to cover foreign exchange derivative contracts, commodity derivative contracts & equity derivative contracts.

Best Execution is embedded in Article 27 of MiFID II which requires investment entities to provide the most favourable 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 monitor to help you to comply with the Best Execution reporting requirements under MiFID II.