We all know that meeting all the requisite trade/transaction reporting obligations for EMIR, MiFID II/MiFIR and SFTR can pose a considerable cost to an investment firm.
Firstly, determining your reporting obligations requires allocation of internal resources and/or engagement of external consultants to analyse the application of the regulations to your firm. Where you are potentially subject to multiple reporting regimes or operate across jurisdictions, the analysis may become very complex. Reporting of trade/transaction information itself also comes with costs. While the regulatory burden is not going to disappear, it can be minimised by outsourcing and choosing the most cost-effective and efficient option for you.
TRAction compares the difference between you reporting directly to Approved Reporting Mechanism (ARM) and/or Trade Repository (TR) and through a delegated third party in the following aspects:
- Internal Resources
- Infrastructure
- ARM/TR Fees
| Traditional Approach (Reporting Directly) | Efficient Approach (Reporting through a Delegated Third-party) | |
|---|---|---|
| Internal Resources | Meeting the reporting requirements may require re-training existing staff or hiring additional staff. The former can divert human resources from existing projects and the latter adds to employment expenses. | Free up your internal resources and allow your team to focus on delivering your core offering/service. |
| Infrastructure | Firms need to spend time and resources to develop ways of generating transaction reports in the correct formats. This in addition to the procurement and storage of all the required data. | Limit the infrastructure expenditure you incur. We have IT specialists who can work with your IT team to adjust your systems to be reporting-ready, again without additional charge. |
| ARM/TR Fees | Firms can directly engage with an ARM or a TR for MiFIR, EMIR and SFTR. Charges are generally a fixed monthly or annual account fee plus a per-transaction charge. | We charge you the similar fees as you would incur if reporting directly to a TR or ARM. What’s more, we provide complimentary advisory and consulting services to unwind the complexity of the EMIR, MiFIR/MiFID II and SFTR regimes for you and answer all your regulatory questions. |
If you think TRAction may be able to help you minimise your trade/transaction reporting costs, have a look at what we offer, our pricing and contact us for a demo.
