Trade Reporting Regimes

Information on specified transactions in financial instruments is required to be reported to regulators in many regions around the world. Compliance with trade reporting regimes can result in costs and resource expenditure for firms.

TRAction Fintech was founded to reduce the compliance burden by taking care of your trade reporting. The requirements vary by jurisdiction and the following information may need to be reported:

  • The type of financial instrument (e.g. derivative, bond)
  • The counterparties to the trade
  • Any intra-day modifications
  • Legal Entity Identifier (“LEI”) and transaction and product identifiers

The data needs to be reported to the relevant regulator through a Trade Repository (“TR”) or other body nominated by the regulator.

The Objectives of Trade Reporting Requirements for OTC derivatives

The overarching objectives of the regulatory trade reporting requirements for financial products are to:

  • Enhance the transparency of trade information available to relevant authorities and the public;
  • Promote financial stability;
  • Support the detection and prevention of market abuse.

Europe – MiFIR and EMIR

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

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.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.

Australia – ASIC Rules

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.

Singapore - MAS Rules

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:

CurrentlyFrom 1 October 2021
Interest rate derivative contracts & credit derivative contracts onlyExpand to cover foreign exchange derivative contracts, commodity derivative contracts & equity derivative contracts

Background & Law Reform

Global commitment to derivatives reform arose out of the Global Financial Crisis (“GFC”) in 2008. The GFC highlighted structural deficiencies in the global derivatives markets and the systemic risk that those deficiencies posed to wider financial markets and the real economy. In the lead-up to the GFC, those structural deficiencies contributed to the build-up of large counterparty exposures for which the risks were not appropriately managed. With details of derivative transactions generally held only between the counterparties, in many cases those exposures were not transparent to other market participants and regulators. The regulatory response, in the form of commitments by regulators around the world to implement derivatives reform, was made at the Group of Twenty (“G20”) Summit in Pittsburgh in 2009. Since then, transaction reporting regimes have been introduced in multiple jurisdictions and are continuing to be amended and updated. Read more – how ASIC and European Central Bank responded to this.

UK & Europe Trade Reporting - MiFID II

MiFID II extends the derivative transaction reporting obligations of MiFID to a larger group of businesses. Read More

UK & Europe Trade Reporting - EMIR

Find out more about the requirements for Europe and the UK's OTC derivatives reporting. Read More

Australia Trade Reporting - ASIC

Find out more about the requirements for Australian OTC derivatives reporting under the ASIC regime. Read More

Singapore Trade Reporting - MAS

Find out more about the requirements for Singaporean OTC derivatives reporting under the MAS regime. Read More

Hong Kong Trade Reporting - HKMA

Find out more about the requirements for Hong Kong OTC derivatives reporting under the HKMA regime. Read More