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 your trades. (ASIC Reporting Rule 2.2.7)
As a reporting entity, you also need to take all reasonable steps to ensure the completeness, accuracy and currency of the information reported. (ASIC Reporting Rule 2.2.6)
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 dependent 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.
Making regular enquiries with your reporting delegate should be easy and can occur frequently by cross referencing the handback file with the trade file.
You should ensure you:
1. reconcile your raw data against the handback files; and
2. cross check your invoice against the handback files.
We also recommend that you:
1. confirm who within your organisation conducts this process; and
2. document this process on each occasion it is performed.
TRAction provides its clients with the trade repository handback files along with detailed instructions for review along with guidance to help reconcile against your raw data. This helps you ensure that TRAction is meeting its obligations as a reporting delegate.
Handback files detail the transactions that have been uploaded to the Australian Derivative Trade Repository (ADTR) through TRAction. These files are generated every day upon successful completion of trade uploads to the ADTR and are returned daily to TRAction’s secure portal. The fields in the handback files are similar to those that were provided to TRAction for reporting purposes.
Feel free to contact us for further information or if you are have any questions.
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