The inception of MiFID II substantially expands the regulatory reporting requirements placed upon investment firms. Additionally, under the European Market Infrastructure Regulation (EMIR) all counterparties are required to report details of derivative contracts they have concluded.
These regulations take the basis set out in MiFID I and expand them with the idea to increase investor operational efficiency and control, to mitigate market abuse and safeguard investors.
While reporting must be accurate and timely, the FCA have made it clear that a ‘data dump’ to ensure all information is reported (over-reporting) is as unacceptable as under reporting. The increased obligations under the new regulations can be onerous to smaller investment firms and will either require a new internal operational process or use of a third party to outsource the reporting obligations.
Linear Investments, a boutique prime broker, are working with a leading 3rd party partner to offer a comprehensive transaction reporting service to third party clients, this is a system that has been implemented, tried and tested within our own environment.