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Increased push for global trade reporting standardisation

Eleven different industry associations have endorsed that principles that ISDA put forward in a report several weeks ago, calling for standardisation of the various derivatives reporting regimes across the globe. The letter containing the endorsement can be found here.

The G20 Pittsburgh Declaration of 2009 called for trade repositories to be established, and derivatives trades sent to them, so that regulators could detect any build up of systemic risk. However, the reporting regimes across the world have not been aligned. Furthermore, even within a regime, it has proven difficult for regulators to read the data that has thus far been sent. Under EMIR for example, matching rates have been very low, indicating that the data is of a poor consistency. These rules are now under review.

The paper calls for standardisation in various areas, including the increased use of reference data standards such as LEIs and UPIs, and data standards such as FpML, as well as general standardisation of rules. Last week, the FIA also called for reform, with more specific proposals, such as one sided reporting.

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on the regulation of the commodity, energy and financial markets. He has more than 23 years of experience in the financial, energy and commodity markets, covering regulatory compliance, credit, risk and financial technology. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy and Commodity Regulation. Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations. Mr. Handler holds a degree in computer science from Imperial College, University of London.


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