30 November, 2020 Blog Entry
Since the financial crisis in 2008, financial services firms have experienced an incremental increase in regulations, which has led the industry to become the most regulated sector worldwide. Historically, firms have treated regulations as a necessary evil and managed them through a tactical and siloed approach. Taking transaction reporting as an example initially it may have appeared to be an easy task to set up. In theory, it was just a matter of sending a pre-defined number of data points to a designated endpoint in a standardized format. However, with the experience of large-scale regulatory programs such as MiFID II, EMIR and Dodd-Frank, firms have realized that the reality of having the data ready for reporting in the right place and at the right time is a completely different undertaking. The velocity of regulatory change is as present today as it has been over the past decade, and is considered by financial firms to be the single biggest challenge for compliance. After the implementation of SFTR, there might be a slowdown of new transaction reporting regimes, though regulatory change will not go away, but rather persist in the form of revisions and amendments. As the regulations start to mature, the regulatory bodies are more focused on the quality of the reports. With data quality at the top of their agenda, it is vital that firms start to revise their reporting solutions and ensure the accuracy and completeness of their reports.