TRAction, the Australian fintech startup, has introduced a trade reporting and monitoring suite of services for foreign exchange and contracts for difference (CFD) brokers in the country, in accordance with the latest over-the-counter trade reporting legislation in the industry.
New Law Covers More Brokers
The law came into effect on December 4 and will cover some 35 retail brokers regulated by the Australian Securities and Investment Commission (ASIC), which were until recently outside the scope of any reporting rules. Most of these have already taken TRAction’s solution on board, the fintech startup said.
Automation Facilitates Compliance
In August, Finance Magnates reported about TRAction’s solution, developed ahead of the coming into effect of the new legislation, citing the fintech service provider’s co-chief Sophie Gerber as saying that the solution will automatically reconcile and submit relevant information about OTC derivatives trades conducted via the MetaTrader system, and for brokers using other systems the company will provide customized solutions.
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The solution automates data processing and interpretation
Following the latest news regarding TRAction’s suite of reporting services, co-founder Quinn Perrott commented: “If a broker works on their own, they need to extract data from MT4 or other platforms and convert it into the format for the ADTR they are reporting to and interpret the legislation in the process. There are currently only two firms who have received an ADTR [Australian derivative trade repositories] licence from ASIC, being a portal which receives trades from brokers, DTCC and CME.”
Expansion in the Future
TRAction is planning to expand its services to other jurisdictions as well, starting with Singapore, where the Monetary Authority Service is currently in the process of launching new trade reporting requirements, with whose adoption the Australian firm is already helping brokers.