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Dodd Frank, EMIR, Mifid, REMIT

Study on trade reporting

Sapient have recently published a study which examines the likely rise in costs that could occur due to the ever increasing burden of trade reporting (and other data reporting), arising from more regulation worldwide. (The report can be accessed via this link after providing details).

The report is based on a survey which asked various questions about how organisations have met their reporting requirements, and their views around the topic. Most respondents have built in house systems, and feel that the main cost factors are driven by constantly changing requirements. Many companies feel that they are behind the curve in meeting future requirements such as MiFID II.

The majority of survey participants are likely to be in the financial sector, but there is a great deal to learn in the energy and commodities sector, which has also been hit by most of the rules, albeit sometimes in a reduced way. In Europe, MiFID II may well push many into full compliance with these rules, including the full MiFID II reporting regime. Even those who keep their exemptions will need to comply with the position reporting rules.

So long as the requirements keep coming and changing there will be work to carry out to meet them. Complying on a tactical basis, i.e. meeting each rule set as it comes, may seem cheaper in the short term, but each new rule set will bring greater complexity. It is therefore worth considering a move to a more strategic trade reporting solution sooner rather than later.

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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