The association has recommended that transaction-level reporting no longer be applicable for ETDs.
Trade association FIA has recently published a report, calling for changes in the way relevant firms need to report Exchange -traded derivatives (ETDs), claiming that the current framework has created many difficulties for reporting firms.
Back in 2009, the G-20 Pittsburgh Summit introduced a global framework in order to protect the financial market against another financial crisis. From this framework, reporting regulations for over-the-counter (OTC) derivative contracts was introduced in order to better understand counterparty risks and exposure.
While well-intentioned, the FIA explains in its report published in June that different approaches across the world have resulted in complex and conflicting Regulation, making it harder for firms.
FIA outlines problems in EMIR regulation
In its report, the FIA highlights that Europe’s European Market Infrastructure Regulation (EMIR) regulation is particularly unique. This is because it requires dual-sided reporting and includes OTC and ETD transactions. As highlighted by the association, the reporting standards were created for OTC trades but are also being used for ETDs.
“However, the application of a single reporting framework applying to both OTC and ETD contracts, which are fundamentally different products, has resulted in regulatory ambiguity and challenges to report complete and accurate data,” the report states.
In order to make this process more efficient, FIA recommends in its report to modify the legislation in order to allow EU regulators the authority to allow reporting firms to submit ETD position reports and remove the obligation to report transaction-level details.
“This would significantly reduce the number of reports submitted by entities trading in ETD contracts without impacting the regulator’s ability to conduct analysis of systemic risk in ETD markets. Furthermore, this would reduce the operational burden faced by reporting firms, whilst enabling firms to enhance remediation capabilities on key data issues.”
Will ESMA take FIA’s comments onboard?
FIA is not the first to criticize the EMIR regulation. In fact, in 2017, the European Commission identified issues with ETD reporting as well, and the International Swaps and Derivatives Association (ISDA) has also called for changes.
Speaking to Finance Magnates, Ron Finberg, Business Development at Cappitech said: "Via the EU's 2017 EMIR review and EMIR Refit this year, it shows that ESMA is analyzing the effectiveness of EMIR and have shown they are willing to make some changes to it.
"In 2018, one of their big campaigns was working with local regulators to review EMIR data for quality assurance reasons. This exercise revealed a number of different problems that exist in the market and may make them more open to the FIA's recommendations in the future."
Trade association FIA has recently published a report, calling for changes in the way relevant firms need to report Exchange -traded derivatives (ETDs), claiming that the current framework has created many difficulties for reporting firms.
Back in 2009, the G-20 Pittsburgh Summit introduced a global framework in order to protect the financial market against another financial crisis. From this framework, reporting regulations for over-the-counter (OTC) derivative contracts was introduced in order to better understand counterparty risks and exposure.
While well-intentioned, the FIA explains in its report published in June that different approaches across the world have resulted in complex and conflicting Regulation, making it harder for firms.
FIA outlines problems in EMIR regulation
In its report, the FIA highlights that Europe’s European Market Infrastructure Regulation (EMIR) regulation is particularly unique. This is because it requires dual-sided reporting and includes OTC and ETD transactions. As highlighted by the association, the reporting standards were created for OTC trades but are also being used for ETDs.
“However, the application of a single reporting framework applying to both OTC and ETD contracts, which are fundamentally different products, has resulted in regulatory ambiguity and challenges to report complete and accurate data,” the report states.
In order to make this process more efficient, FIA recommends in its report to modify the legislation in order to allow EU regulators the authority to allow reporting firms to submit ETD position reports and remove the obligation to report transaction-level details.
“This would significantly reduce the number of reports submitted by entities trading in ETD contracts without impacting the regulator’s ability to conduct analysis of systemic risk in ETD markets. Furthermore, this would reduce the operational burden faced by reporting firms, whilst enabling firms to enhance remediation capabilities on key data issues.”
Will ESMA take FIA’s comments onboard?
FIA is not the first to criticize the EMIR regulation. In fact, in 2017, the European Commission identified issues with ETD reporting as well, and the International Swaps and Derivatives Association (ISDA) has also called for changes.
Speaking to Finance Magnates, Ron Finberg, Business Development at Cappitech said: "Via the EU's 2017 EMIR review and EMIR Refit this year, it shows that ESMA is analyzing the effectiveness of EMIR and have shown they are willing to make some changes to it.
"In 2018, one of their big campaigns was working with local regulators to review EMIR data for quality assurance reasons. This exercise revealed a number of different problems that exist in the market and may make them more open to the FIA's recommendations in the future."
Noel Quinn's Surprise Exit Marks End of an Era at HSBC
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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