Completeness and accuracy testing
FCA have reminded firms of their requirement for completeness and accuracy testing for transaction reporting.
FCA have stated;
firms have a “requirement to conduct regular reconciliation of front office trading records against data samples provided by competent authorities.”
“the number of data extract requests we receive suggests some market participants may not be aware of this, or may not be conducting regular or sufficiently thorough reconciliation”
“Firms should not assume that a report was accurate because it was accepted by the Market Data Processor, as business validation rules are not intended to identify all errors and omissions”
Data quality issues
FCA have summarised a variety of data quality issues they are seeing – and they have stated they expect Firms should have processes in place to monitor for these issues;\n
“we expect firms to have arrangements in place to report details accurately, and to notify the FCA where inaccurate information is identified.”
Errors and Omissions
“Where errors or omissions are identified in transaction reports, the ARM, investment firm or trading venue reporting the transaction must correct the information and submit a corrected report to the competent authority”
“Market participants must promptly notify the relevant competent authority where they become aware of errors or omissions within a transaction report.”
https://www.fca.org.uk/publication/newsletters/market-watch-59.pdf