FinfraG Article 39 Post Trade Transparency Trade Reporting support for cash equities and fixed income for a large European Bank

Client: Large European Bank

 

Objective

 

To implement FinfraG Article 39 Post Trade Transparency Trade reporting for cash equities and fixed income.

 

Challenges

 

  • Requirements traceability: Implementing provisions for a requirement spread across multiple regulatory documents made it difficult to analyze and trace requirements
  • Ambiguity in the regulatory text and definition of few key terms made interpreting and understanding the regulation a challenge
  • Lack of clear regulatory guidance

 

CRISIL's Solution

 

  • Understanding the background
    • Conducted detailed study of  trade reporting regulation with implementing provisions in FMIO, FINMA-FMIO, FINMA;
    • Sought out compliance team advice and industry confirmations on our interpretations/assumptions for ambiguous regulatory texts;
    • Liaised with industry vendors to define reporting process in light of similar regulations like MiFID II already in place;
    • Held regular discussions with working group to understand the impact from stakeholder perspective.
  • Defining the business requirements
    • Defined requirements for trade reporting and reference data;
    • Identified the entities/branches/products and business scenarios or executions in scope of the regulation and converted them to business requirements;
    • Mapped the regulatory fields to the fields in the source systems of the client to ensure accurate reporting for cash equities and bonds.
  • Defining the functional requirements
    • Converted business requirements into functional requirements, use cases and scenarios;
    • Defined the logic for sourcing the unavailable reportable fields from trading systems/ reference data or maintaining them in-house.

 

Client Impact

 

CRISIL helped the client comply with a complex and poorly defined reporting rule by ensuring all the regulatory requirements are were properly interpreted, understood, documented and communicated to various stakeholders for proper implementation and compliance.

Questions

 

Looking for high-end research and risk services? Reach out to us at:

 

United States
1-855-595-2100/
+1 646 292 3520

 

United Kingdom
+44 (0) 870 333 6336

India
+91 22 33 42 3000 /
+91 22 61 72 3000