Why every Trading Participants need be familiar with Regulatory Reporting!

1. Why every Trading Participants need be familiar with Regulatory Reporting! The evolving requirements of ESMA and Market Abuse Regulation (MAR) persuade Reporting Entities to strategize the reporting structure of a trade. Since MiFID II implementation, it is aiming at increasing investor protection by creating a more efficient, risk-aware and transparent market for investment services and activities. This regulatory initiative has been described as the “biggest overhaul of financial markets regulation in the EU for a decade” and provides a significant extension of the previous MiFID regulation with a broader regulatory scope and more stringent rules for investment firms — such as banks and other providers of investment services — as well as for regulated markets and data reporting services providers. To comply with the evolving regulatory processes, every financial firm needs to stay familiar with the MiFID II’s reporting processes. This article will provide you an overview of ESMA’s MiFID II reporting structure and its flow. MiFID II Reporting to the Regulatory Bodies: What is a Financial Regulatory Body & what is the major role played! A financial regulatory body, regulates the financial firms which provides services to consumers and maintains the integrity of the financial markets. As a supervisory authority, every regulatory bodies aim at the fair and orderly operation and the transparency of the financial markets by ensuring that listed companies provide correct and complete information. It enables the establishment of financial services by verifying that financial institutions comply with rules of conduct. The below diagram emphasizes the reporting scenarios that market participants will need to adhere in order to implement the standardized regulatory compliance. Reporting by Trading Venues: Transaction Reporting The Transaction Reporting adheres under the RTS 22, which requires the investment firms & trading venues to report complete and accurate details of transactions in financial instruments no later than the close of the following working day as per Markets in Financial Instruments Regulation (MiFIR).

2. The technology enablement should integrate 65 required transaction reporting fields however it should also ensure the data security. Also there is a need to certify connectivity to the new and existing ARMs, and help the clients for submitting initial and amended transaction reports. Transparency Reporting The MIFID II / MiFIR transparency reporting consist of 2 core transparency obligations. 1.Pre-trade transparency - Designed to provide market participants with near real time publication of basic trade data. 2.Post-trade Transparency - Designed to provide market participants with near real time publication of executed trades Once the participants submit their reports, Approved Publication Arrangements (APAs), and Consolidated Tape Providers (CTPs) might further report this to NCA. The transparency could help the authorities to monitor the complete risk and the market exploitation. As per RTS 1 - Transparency requirements for Trading Venues and Investment firms for Shares / depository receipts / Exchange traded funds / certificates will be handled and this transaction has to be reported within 0 to 15 minutes. To Know more visit https://www.sensiple.com/BFSI/blog/why-every-trading-participants-need-be-familiar-regulatory- reporting