Regulatory Reporting

Regulatory compliance for modern markets

Transaction reporting is a crucial aspect of the new regulatory guidelines put in place with MiFID II.

While MiFID II’s trade reporting requirements ensure transparency and fairness in the market, its transaction reporting requirements help regulators detect and prevent market abuse. The information supplied under transaction reporting won’t be made public.

Reporting Under MiFID II

In order to meet the transaction requirements laid out in MiFID II, firms must provide regulatory bodies with complete and accurate sets of data. For transaction reporting to be a success, regulation bodies require complete and accurate data. Under MiFID II, the required information has grown to around 65 fields in total. Each transaction report needs to include:

These new MiFID II regulations stipulate that firms need to keep a minimum of five years of records relating to services, activities and transactions, whether they were concluded or merely intended. All records need to be easily retrievable for access and reporting to regulators within the industry standard time frame of 72 hours.

Additionally, all data relating to both trade and communications needs to be stored in WORM (Write Once, Read Many) format, which is considered to be fully tamper proof.

While MiFID II’s trade reporting requirements ensure transparency and fairness in the
market, its transaction reporting requirements help regulators detect and prevent market
abuse. The information supplied under transaction reporting won’t be made public.

Covered Asset Classes

The TZ system can process a wide variety of asset classes. The diagram below indicates what asset classes are covered by the TZ system.

Why Choose TZ?

Our partner, UnaVista, provides a comprehensive, end-to-end transaction reporting model, so you can focus on other things. The end-to-end transaction reporting solution can be used to satisfy all the requirements of the following
legislation:

  • MiFID, MiFID II and MiFIR (Markets in Financial Instruments Directive/Regulation)
  • EMIR (European Market Infrastructure Regulation) 
  • SFTR (Securities Financing Transactions Regulation) 
  • REMIT (Regulation for Wholesale Energy Markets Integrity and Transparency

Our MiFID II transaction reporting solution also covers best execution reporting as outlined in RTS 27 and RTS 28.

As part of their commitment to best execution, investment firms are now required to report their top five execution venues on behalf of clients. This disclosure needed to be published on or before 30 April 2018, and ranked venues by execution quality for the preceding calendar year (ie. January to December).

MiFID II’s Regulatory Technology Standards (RTS) 27 and 28 allow the public and investors to evaluate the best execution practices of a firm. The standards affect non-EU firms too – with a greater focus on transparency. Non-EU firms will need to be prepared to provide regulators with information about trading and execution orders they’ve actioned on behalf of their EU clients.

RTS isn’t just a race for compliance either – there are benefits for firms. The transparency of RTS gives firms the opportunity to demonstrate the value of their services and quality of expertise to potential clients.

To be compliant with the requirements of RTS, firms will need robust systems in place with the ability to analyse large quantities of data.

For a free proof of concept, or to book
a demonstration, get in touch.

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