Containing sixty-five fields, and submissible on a T+1 basis, a MiFID II transaction report requires the gathering of extensive reference data and other information. Firms must also decide whether a transaction is ToTV (Traded on a Trading Venue), and so reportable.
In addition, MiFID II RTS 22, Article 15, stipulates that firms must have in place arrangements to ensure transaction reports are complete and accurate, including testing of their reporting process and regular reconciliation of front office trading records against data samples provided by competent authorities.
To perform this type of comparison, companies must reconcile information from their own source systems with that from an Approved Reporting Mechanism (ARM) and from their regulator. A huge amount of data is involved, and where information is in multiple formats, reconciliations can prove time-consuming and difficult.
Scrutiny by authorities of firms’ reporting is intensifying, with regulators increasingly willing to clamp down on failings and impose fines. As a result, pressure is growing on financial institutions to ensure their transaction reporting obligations are met fully and accurately.
In response to the challenge faced by the industry, SmartStream has developed its MiFID II Transaction Reporting Reconciliation and Reporting Decision Control Framework. Find out how AI-enabled technology and rapid access to specialist reference data assists firms to achieve complete and accurate MiFID II transaction reporting.