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Trade reporting uncertainty raises “multiple problems” 

April 30, 2014
Elliott Holley, Banking Technology

Nearly three months after the European Commission’s 12 February deadline for trade reporting, market participants are still not ready to report their derivative trades and serious problems remain with understanding the rules.

While delegated reporting may provide a ‘get out of jail free’ card for some financial institutions, others are deeply concerned about the impact of the new rules and the competence of the regulator, according to panellists at the Swift Business Forum in London.

“We were taken by surprise with the volume of clients coming in and their lack of preparation,” said Daniel Jude, global head of business development, repository services at CME Group. “We still have clients who are yet to start reporting. It’s not just one area where clients are falling over, either – there are multiple problems at all levels.”

On 12 February, reporting became mandatory for all market participants trading derivatives in Europe, as part of the European Market Infrastructure Regulation. EMIR is simply the European wave of a broader push around the globe to increase transparency in OTC derivatives markets, which were blamed as a contributing factor to the financial crisis. Similar rules in the US are also being implemented under the Dodd Frank Act, and in many other G20 states.

Read more: Banking Technology

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