Delegating your reporting obligations to a third party does not transfer your regulatory accountability. Across all major regimes, the reporting entity remains ultimately responsible for the accuracy, completeness, and timeliness of submitted data.
EMIR, MiFIR, SFTR
EMIR, MiFIR and SFTR trade and transaction reporting rules allow reporting entities to delegate their reporting obligations to a third party. Under Art 9(1) of EMIR, Art 26(7) of MiFIR and Articles 4 and 12 of SFTR, reporting entities retain responsibility for ensuring transactions are reported correctly.
ASIC
Under ASIC’s Regulatory Guide (RG) 251, firms reporting OTC derivatives are required to make regular enquiries with their reporting delegate to ensure that the delegate continues to meet its obligations to report their trades. (ASIC Reporting Rule 2.2.7). Firms must also take all reasonable steps to ensure the completeness, accuracy and currency of the information reported. (ASIC Reporting Rule 2.2.6)
MAS
Under the Securities and Futures Act (“SFA”) in Singapore, there is no specifically articulated requirement for firms reporting OTC derivatives to make regular enquiries with their reporting delegate like there is in other trade reporting regimes.
Section 125 of the SFA only specifies that reporting can be delegated to a third party or that a reporting entity may give consent to its counterparty under a derivative to report on its behalf.
However, TRAction considers that in relation to delegated reporting, the MAS Guidelines on Outsourcing (Financial Institutions other than Banks) and MAS Guidelines on Outsourcing (Banks) (effective on 11 December 2024) (“Guidelines”) apply. This means an institution needs to be able to demonstrate their observance of the Guidelines in respect of their reporting through TRAction.
As a reporting entity, specified persons should ensure that the accuracy of the information is maintained and make timely amendments to the report information where necessary, as outlined in the FAQ on Securities and Futures reporting.
How often should you make enquiries?
SFTR, ASIC, MAS, EMIR & MiFIR
TRAction recommends that you review the reporting data processed on your behalf (i.e. TRAction’s handback file) in a regular and systematic manner. This provides an additional layer of oversight and keeps you informed of submissions made on your behalf to the Trade Repository (“TR”) or Approved Reporting Mechanism (“ARM”). With the simple review process illustrated below, making enquiries should be straightforward and can occur at a frequency that suits your firm by cross-referencing the handback file with the trade file.
Across all reporting regimes, regulators do not prescribe a strict frequency for making enquiries, but instead emphasise that this should be determined by each entity based on its regulatory obligations and risk management parameters. For example, MAS does not specify the requirement to undertake, nor the nature or frequency of, enquiries with a reporting delegate. Similarly, ASIC advises that enquiries should be made regularly but leaves the definition of “regular” to each entity, depending on the volume of transactions entered into, modified, or terminated.
Under EMIR and MiFIR, no specific frequency is prescribed either; however, both regimes impose a continuous obligation to ensure that reported data is complete, accurate and submitted on time. Under EMIR in particular, reporting entities are required to have arrangements in place to identify and resolve reconciliation breaks as soon as practicably possible.
In practice, the appropriate frequency of review will depend on the volume and nature of your activity. For entities with a high frequency of transactions, it is generally suggested that enquiries or reconciliations be performed at least weekly, consistent with expectations observed under SFTR and supported by the fact that under EMIR, trade repositories are required to make reconciliation results available on a daily basis. For entities with lower transaction volumes, a monthly review is considered a reasonable minimum, in line with ASIC guidance. In all cases, reviews should be conducted consistently, documented each time they are performed, and not reserved only for instances where an issue is suspected.
How do you check the work quality of your delegate?
It’s important that you take all reasonable steps to ensure the completeness, timeliness and accuracy of the trade/transaction information reported.
For EMIR, MiFIR, SFTR and ASIC:
Take the time to ensure you:
- reconcile your raw data; and
- cross check your invoice against the handback files or confirmations received from your delegated reporting provider.
We also recommend that you:
- assign clear internal ownership of the review function;
- establish and follow a documented procedure each time a review is conducted; and
- retain records of each review, including any discrepancies found and the steps taken to resolve them.
For MAS:
You should ensure that you:
- Determine whether you are reporting using:
- Non-Compression Method; or
- Compression Method
- Reconcile your raw data with handback files (using the appropriate method determined)
Regime-by-Regime Requirements at a Glance
| Regime | Obligation to Enquire? | Recommended Frequency | Reconciliation Method |
|---|---|---|---|
| EMIR / MiFIR / SFTR | Yes — entity remains ultimately responsible | Entity-determined; regular review recommended | Reconcile raw data & invoice vs. handback file |
| ASIC (RG 251) | Yes — explicit requirement under Rule 2.2.7 | Regular; monthly minimum suggested by ASIC | Reconcile raw data vs. handback file |
| MAS (SFA) | No explicit requirement, but MAS Outsourcing Guidelines apply | Entity-determined; regular review recommended | Non-compression or compression method vs. handback file |
What if I still need help?
TRAction clients are provided with guidance and support when conducting these checks. If you have any questions, please reach out to us at [email protected].
How does TRAction help its clients meet these obligations?
On a daily basis, TRAction provides its clients with handback files detailing the transactions that have been uploaded to the Trade Repository (TR) or Approved Reporting Mechanism (ARM). These files are generated every day upon successful completion of trade uploads to the TR/ARM and are returned daily to TRAction’s secure client ShareFile portal. The handback files support reconciliation of the regulatory reporting performed on your behalf against your raw data, which is available in the processed folder within the same ShareFile portal.
The fields in the handback files are similar to those that were provided to TRAction for reporting purposes, making reconciliation against your raw data straightforward. We provide a detailed guide to assist clients with this process, and our support team is available to answer any further questions. This transparent process helps you ensure that TRAction is meeting its obligations as a reporting delegate.
