Laurent Collet, Deloitte Luxembourg;
The financial sector woke up to a brand new reporting era when MiFID II and MiFIR entered into force on 3 January 2018; about a decade after the initial Markets in Financial Instruments Directive was implemented, the European Commission is strengthening investor protection through new requirements for transparency in financial markets.
From this month onwards, almost all transactions in financial instruments executed between two counterparties will need to be reported to the competent authorities within 24 hours. This represents a significant reporting volume.
“With the entry into force of MiFIR, the requirements for pre and post transaction reporting are multiplied. Not only will financial players need to understand the full scope of the regulation and what they have to do to be compliant, they would also need to establish a suitable, technical process for the actual daily reporting,” explained Laurent Collet, Partner at Deloitte Luxembourg and responsible for the firm’s Transaction Regulatory Reporting Services.
EMIR meets MiFIR
The European Market Infrastructure Regulation (EMIR) entered into force in 2014 and established a set of reporting requirements for derivative transactions. With MiFIR, the scope of reportable instruments is broadened to include among others listed instruments.
The new reporting requirements will increase the amount of information available and thereby provide greater transparency for the general public and competent authorities alike.
“The new regulatory environment will dramatically reshape daily operations for investment firms and many financial organizations. The reporting encompasses daily data collection and processing, preparation and distribution of the reports to the competent authorities, as well as the review of feedback received from the competent authorities. The full reporting process requires significant resources, knowledge and reliable technical tools,” added Laurent Collet.
Data confidentiality and IT security
To prepare for the new reporting challenges, Deloitte Luxembourg established Deloitte Solutions in 2016. Deloitte Solutions is a PSF entity subject to strict IT security and data confidentiality standards, and Deloitte’s Transaction Regulatory Reporting services (T2R) are handled in Deloitte Solutions’ environment.
With its T2R services, the Deloitte team combines its regulatory knowledge with smart technical solutions, and manages as a dedicated agent the transactional reporting for its clients from A to Z. This comprehensive approach makes the Deloitte Transaction Regulatory Reporting solution one of the unique platforms in Europe designed to manage both EMIR and MiFIR reporting for clients, in a cost and resource efficient manner.
