Under the Australian Securities and Investments Commission’s (ASIC) Regulatory Guide (RG) 251, reporting entities are 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 make enquiries?
ASIC advises that regular enquiries should be made into your reporting delegate, however they do not define what ‘regular’ is. RG 251.59 – 251.34 indicates that this should be determined by each entity and should be dependant based on the number of transactions you enter into, modify or terminate. For entities with a high frequency of transactions, ASIC suggests enquiries be made at least once a month.
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 with a handback file which details the transactions which have been uploaded to the Australian Derivative Trade Repository (ADTR) through TRAction. This handback file is generated upon successful completion of your trade uploads to the ADTR and is returned daily to the secure portal. The fields in this handback file are similar to those that were provided to TRAction for reporting purposes.
A sample handback file is detailed below:
The above transactions on the handback file can be matched to the transactions detailed in the reports. The client code and deal number will be the USI in the reports. For example, if your client code in the handback file is ACME, the USI for the first transaction listed above will be ACME1471562 in the handback reports.
Further, the handback file you receive at the end of the month can also be used to cross check your monthly TRAction invoice.
With the process developed by TRAction above, regular enquiries into TRAction is easy and can occur frequently.
Feel free to contact us for further information or if you have any questions.
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. She has extensive experience in providing compliance and legal services to Australia’s financial services and credit participants. Her vast experience coupled with in-depth knowledge of business practicalities, regulatory compliance and financial services laws allow her to effectively and efficiently engage with clients.