What’s in the data and what are the risks?
It’s a fair concern and it’s a question we’ve been asked by a few brokers, so we’ve taken the time to answer the questions fully and share with the industry as a whole.
Does the data identify my individual clients?
In the case that the client is an individual, the ASIC Reporting Rules require a unique ID and the client’s legal name. No phone numbers, emails or address are required in the reports.
I’d like to keep my trade volume figures private, are these exposed in the data I give to TRAction?
Yes. Due to the snapshot exemption being closed for many types of transactions, this information is available to TRAction.
For OTC derivatives which still have the snapshot exemption available, this means that you can only report transactions open at the end of the day. If a transaction is opened and closed before the end of day it is not required to be reported, therefore the reported data won’t capture the total trade volume of your firm or individual clients for that type of OTC derivative.
Could the data reveal the profit or loss of my firm?
Not necessarily. Where you are eligible for single-sided relief for your hedge trades, TRAction will not see those trades and therefore we will not have full details to conduct profitability analysis on your firm. Nevertheless, TRAction does not conduct this type of analysis on the information received. However, ASIC may be provided with that information about your trades from your counterparty’s reports so it would be possible for them to conduct this analysis.
Will the information I provide to TRAction identify whether we are an STP broker or running a book?
No. As most brokers will benefit from single sided relief they will not have to report all or some of their hedging trades (trades done with another reporting entity). Therefore there would be no possible way to extract or calculate the ‘risk model’ of the broker from the data provided to TRAction.