• Review of EMIR data’s usefulness

    This is a view backed by the Financial Stability Board (FSB) who state in a recent report on the impacts of the G20 regulation reporting regime for OTC derivatives show that “Authorities are not aware of precise industry-wide estimates of compliance costs that disaggregate OTC derivatives reforms from other financial regulatory reforms. Generally, transitional implementation costs have been significant” 

  • FCA Enforcement Procedure

    Where the FCA have identified a case they wish to enforce, they follow this procedure

  • FCA Investigation Procedure

    Please see below for details of an investigation team’s processes for identifying market activities which require enforcement

  • European System of Financial Supervision (2011)

    The European System of Financial Regulation consists of 2 groups of bodies;

  • EMIR Counterparty Breakdown

    ESMA have performed an analysis on the counterparties involved in the transaction reports they have received. IR derivatives have the greatest number of players, with 95,000 independent Investment firms identified.

  • Outstanding notional by product and asset (2017)

    Outstanding notional (EMIR)

  • Number of open records by product and asset (2017)

    Number of EMIR transaction reports

  • Repositories EMIR Reporting Obligation

    For EMIR, the following EU entities (broken down by notional value) have a reporting obligation when they execute a derivative in the following asset classes; Equity (EQ), Currency (CU), Commodity (CO), Interest Rate (IR), Credit (CR).

  • Benefits of automating your TR Assurance processes

    Traditionally Investment firms would employ the skills of a consultancy firm to perform Transaction Reporting assurance. The consultancy firm would execute a manual pre-described process involving business and data analysis to check the firm’s adherence to their regulatory reporting requirements. The process would usually take up to 10 days for a consultant to complete, at day rates of up to £2000 per day.

  • Geography

    40% of all MiFIR investment firms are registered in the UK, with 3,902 active Investment Firms.

  • UK Regulated Entities

    The following entities are registered in the UK and regulated by the FCA

  • Regulatory Change – A timeline

    Since the 2008 financial crash there have been over 50 new individual pieces of regulation for investment firms to implement.

  • The Financial Stability Board

    At the Pittsburgh Summit, the Heads of State and Governments of the Group of Twenty agreed the creation of the Financial Stability Board (FSB). They endorsed the FSB’s original Charter of 25 September 2009 which set out the FSB’s key role in promoting the reform of international financial regulation. 

  • G20

    The G20 is the group of the 20-leading industrialised and emerging economies, who account collectively for 85% of the world GDP and 2/3rds of the world population. (Telegraph, Jul 17)

  • Where has Control Now sourced there validations from?

    Sources of TR ACCURACY validations

  • MiFIR Reporting Obligation

    For MIFIR, the reporting obligation applies to investment firms authorised under MIFID II who execute in a financial instrument. (Article 26(1), MiFIR)

  • Regulatory Focus is Changing

    The rate of regulatory change is set to slow and Control Now believe this will allow for a period of reflection by regulators and reporting firms to assess the quality of implemented solutions.

  • What is Transaction Reporting Completeness Testing?

  • Associations & Industry Boards

    See an example of industry associations; 

  • FCA Transaction Reporting Fines

    The FCA recently fined Merrill Lynch £35 million for EMIR reporting failings. (MLI Final Notice,

  • National Competent Authorities

    The national supervisory authorities of EU member states are as follows (EBA);

  • Product Breakdown

    Exchange traded product breakdown – 1-day European exchanges (FESE);

  • Exchange Traded Market Trends

    Exchange traded market product value – per quarter worldwide (FESE);

  • Open positions by Entity by outsatnding notional (2018)

    Entities with an EMIR reporting obligations

  • Trade Repositories

    A trade repository is the regulatory end-point for EMIR reporting. ESMA accesses data from trade repositories in order to perform their role of market oversight. All reporting firms with an EMIR reporting obligation will report their trade and position information to a trade repository.

  • ARMs

    ARM’s provide Reporting Firms with the ability to validate their transactions and submit them to the relevant NCAs on their behalf. 

  • Reporting Complexities: Data Requirements

    Firms with a reporting obligation for both regimes (MiFIR, EMIR) must report 171 data points by the close of the business day following execution;

  • What is an Investment Firm?

    MiFIR Investment Firms have a reporting obligation for MiFIR and EMIR, and there are ~10,000 distinct, active Investment Firms across Europe.

  • European Regulated Entities

    The table states the number of active regulated entities (ESMA Registers) registered across Europe and have a reporting obligation;

  • Evidence for increasing regulatory secrutiny

    After a period of intensive regulatory change, CN believe the market hasn’t correctly implemented their MiFIR and EMIR reporting requirements. 

  • What validations are executed?

    MiFIR and EMIR validations details

  • What is Transaction Reporting Assurance?

    As well as reporting, MiFIR stipulates the requirement for firms to implement controls into their businesses to maintain and monitor the accuracy and completeness of their transaction reporting;

  • EMIR Reporting Obligation

    For EMIR, the following EU entities have a reporting obligation when they execute a derivative in the following asset classes; Equity (EQ), Currency (CU), Commodity (CO), Interest Rate (IR), Credit (CR).

  • What are the MiFIR reportibale fields?

  • Whats the difference between transaction and trade reporting?

  • What happened to TRUP?

  • DLT and Financial Regulations

    ESMA have provided an indication of how they would envisage the market structure looking to accommodate for a compliant sector benefiting from the advantages DLT has to offer.

  • Digital Data Container (DDC)

    One of the activities specified in the Financial Data Standardisation Project (FDS) project is to identify and analyse relevant technologies which could help achieve its objectives.One of these technologies is the use of a Digital Data Container (DDC) using Distributed Leger Technology (DLT) for contractual information. “A study will be conducted which aims to assess the feasibility of creating a digital data container (DDC) based on Distributed Ledger Technology and Smart Contracts” FISMA: Financial Data Standardisations (EC, 16)

  • Regulatory Reporting and Technological Innovation

    The Financial Services Industry has been at the avant-garde of technological innovation for decades. However, while this has brought about increased productivity, the beneficial effect is of diminishing returns when in cross sector comparisons. Recent technological improvements (<10 years) have been substantial as we move into an era of big data. Many other sectors have faced large growth in productivity by adopting these technologies. However, due to large implementation costs due to legacy systems implemented in the 90’ and 00’s, the Financial Services sector has seen substantial barriers to delivery of new technologies.

  • Common Financial Language

    In December 2018, the European Commission has confirmed its intention to “explore ways in which harmonised data definitions (a ‘common financial data language’) could be used to optimise supervisory reporting without compromising the objectives of the relevant legislation.” Follow up to the Call for Evidence - EU regulatory framework for financial services (EC, Dec 17)

  • Financial Data Standardisation Project (FDS)

    “The reason why a project on Financial Data Standardisation (FDS) was launched in order to assess the potential to report financial data more efficiently (at lower cost) and produce better data for risk assessment by the supervision authorities” (EC Staff Working Doc, Call for Evidence - EU regulatory framework for financial services)

  • Regulatory Reporting: The Regulators Next Steps

    “The Commission has concluded that a twofold approach is necessary to address the problems affecting supervisory reporting. Immediate and targeted action should be taken to address the most problematic areas and a more comprehensive, long-term approach to address the costs and benefits of supervisory reporting” Follow up to the Call for Evidence - EU regulatory framework for financial services (EC, Dec 17).

  • Better Regulation and Regulatory Fitness and Performance (REFIT) programme

    The European Commission recently undertook a review of all financial regulations since the financial crash to ensure they “deliver real value and results”. This review is part of a wider Better Regulation and Regulatory Fitness and Performance (REFIT) programme to ensure the European regulations are having their intended consequences and at minimum cost to the Eurozone economy.

  • BaFIN

    Germany has the second largest financial services market in the EU. BaFIN and the Deutsche Bundesbank regulate 2,346 MiFID investment firms (25% of the European market).


    The UK financial services regulatory supervision is completed by two bodies; the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA).

  • The EBA and ESMA

    The EBA and ESMA perform tasks associated with the proposition, analysis and release of new regulation affecting the banking and capital markets of Europe respectively.

  • Exchange Traded Market Analysis

    All firms registered in an EU country who trade products which are listed on a European trading venue are in scope for the reporting requirements for MiFIR. If these products are derivatives based upon an interest rate (IR), foreign exchange (FX), equity (EQ), credit (CR) or commodity (CO) they are also reportable for EMIR.

  • Reporting Complexities: Regulators comments

    This level of regulatory change has created a complex set of regulatory reporting requirements. The European Commission recently undertook a review of financial regulations inviting industry feedback from 300 market participants. The respondents stated that “Reporting requirements are perceived as too numerous and too complex.”(EC, Dec 17)

  • Transaction Reporting: A Timeline

  • How do regulators enforce regulatory fines?

  • How do the regulators monitor transaction reporting?

  • Why do I need to perform Transaction Reporting Assurance?

    The FCA principals for business mandates that a firm under their scrutiny "must take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems." (PRIN 2.1.1) and “breaching a Principle makes a firm liable to disciplinary sanctions." (PRIN 1.1.7).

  • Does my ARM perform these validations?

  • What is Transaction Reporting Accuracy Testing?

  • What is a Front Office Trading system?

  • What is EMIR?

    The European Market Infrastructure Regulation (EMIR) has a very similar objective to MiFIR, aiming to “improve transparency and reduce the risks associated” (FCA, Feb 18) with European markets, however it focuses only on derivative markets.

  • What is a MiFIR Financial Instrument?

  • What is MiFIR?

    The Markets in Financial Instruments Regulation (MiFIR) went live on 3rd January 2018 and aims to strengthen investor protection and improve the functioning of financial markets making them more efficient, resilient and transparent.

  • What do regulators use transaction reports for?

  • What is Transaction Reporting?

    The financial crisis triggered the adoption of more than 50 new pieces of EU legislation (EC, Nov 18) to restore financial stability and market confidence in European Capital Markets.

  • Introduction to European Financial Regulations

    Financial regulations can broadly be broken down into 2 categories; those to regulate the banking industry and those developed to regulate the transparency, fairness and resilience of capital markets.