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.