As the two year anniversary of Europe derivatives reporting regime nears, firms are struggling to report trades consistently
years since new reporting rules were introduced in Europe,
major hurdles remain to achieving their underlying regulatory
objectives: identifying and monitoring systemic risks in the
over-the-counter derivatives market.
firms are struggling to report trades consistently across
business lines. Counterparties are failing to agree on trade
identifiers. Reconciliation rates between trade repositories
(TRs) remain low. The European Securities and Markets
Authority’s (Esma) data aggregation plans are
subject to delay. And regulators globally are taking different
approaches to data quality requirements within their own
aftermath of the financial crisis, regulators were told by G20
political leaders to implement trade reporting of OTC
derivatives market activity in order to shed light on a
previously opaque, complex and global market. But there are
doubts the necessary global infrastructure will be in place ten
years after derivatives exposures helped bring down Wall Street
giants AIG and Lehman Brothers in 2008.
This article is available to subscribers and registered users
Please log in to continue reading.
Not yet registered? Take a free trial.
If you have already taken a free trial you
have ongoing access to the analysis section of FOW.com including this story.
Log in using your details below to read.
Already have an account? |