“The OTC derivatives market is facing considerable changes not only in Europe but across the world, as new regulations are introduced. Luxembourg’s financial players need to prepare for upcoming trade and transaction reporting changes,” states Laurent Collet Partner Advisory & Consulting at Deloitte Luxembourg. The event intended to help the participants to understand their reporting obligations and contribute to the definition of the most appropriate strategy for reporting by discussing key themes with experts from the reporting business. “The conference has given the audience the opportunity to understand the benefits of building reporting across regulatory demands instead of continuing to use the current silo approach as there are many commonalities in the different transaction reporting regulations," stipulates Benoît Sauvage, Senior Advisor at ABBL. 

Reporting strategies revisited

Buy side and sell side financial participants, as well as corporate participants, have had to take on an additional operational burden mainly due to the unexpected complexity of transposing roughly 80 transaction fields into Trade Repositories on a daily basis. The implementation of the EMIR reporting, contrary to expectations, was probably one of the most challenging reporting issues faced by market participants over the last years. In addition to the EMIR-related changes, the transaction reporting requirements will continue to shape the regulatory reporting highway in Europe and beyond in the next coming months and years. Transactions will be sent to the National Competent Authority (NCA).MiFID II will also bring trade transparency to a wide range of financial instruments.

“The question is now how to put in place a long-term strategic solution. A well-designed transaction reporting model is the only way to achieve proper efficiency and consistency in data reporting. According to recent studies, managed transaction reporting services can provide substantial cost savings and may be a viable alternative to in-house development,” explains Laurent Collet.