Regulators and regulated have come together to improve the current transparency value equation by introducing granular guidance in the form of code.
JWG research efforts are pushing forward to explore RegTech reporting opportunities with a global, virtual SupTech and RegTech seminar on 29 June.
We are inviting global SMEs to help shape the agenda and register today.
JWG’s Digital Reporting Task Force concluded last year that current regulatory reporting systems will not scale to meet the needs of a digital, agile, data-driven economy in a cost-effective manner without public/ private sector collaboration.
This year, public sector dreams of transparency have turned into data quality nightmares and the time for experimentation is over.
Since 2017 Regulators have been experimenting with new technology to get better risk data via Digital Regulatory Reporting (DRR).
JWG is proud to have helped get global Derivatives off the drawing board and into production in time for the US CFTC reporting rewrite this quarter. We were equally pleased to see the European Commission endorse the DRR approach. But it was absolutely music to our ears that, at long last DRR, will be incorporated into the trading agenda.
There are real commercial prizes for getting CDM DRR code right
Our subject matter experts were united in their call for better transparency being key to a better marketplace at our 22 March trading seminar. In a nutshell, last generation reporting tools have resulted in a complex nightmare due to poor data specification practices, inconsistent and unstandardized approaches and incoherent reporting.
However, far from a downbeat mood, the group was energised by the possibilities. With proper, granular guidance in the form of code that keeps pace with expectations there is great hope that we can get reporting rules right.
To do so, however, coalitions across the buy-side and sell-side should be driven by trade associations and standards bodies to develop DRR code that fits the industry standard common domain model (CDM).
This is not just a question of reducing risk, it will enable more value from alignment of market practices.
There are real commercial prizes for getting CDM DRR code right – however success will require breaking down data challenges by asset class and providing a compelling business case to incentivise collaboration.
2023 reporting agendas
14 years since the G20 endorsed plans for global transparency we are revisiting the initial regimes while reformulating the approach to issuing data requests.
This means that industry practitioners need to hit short-term trade and prudential reporting deadlines while keeping on top of the broader public sector efforts.
- Standard derivatives trade code is being deployed for: US, EU, JP, AU, UK, SG here
- ESMA has a new ‘core market data & the quality mandate’ here to revisit SFTR, MiFID and EMIR standards and the consolidated tape (CTP)
- UK are revising trade reporting obligations and also introducing CTPs
- Europe is pushing ahead with MRER here
- New Basel IV prudential reporting requirements are being implemented globally
- BoE CP4/23 Strong and Simple here
- The EBA 430C: integrated reporting system here
- The Taxonomy Regulation bring firms in line with European environmental targets through disclosures of environmental impact of economic activity from 1 January
- New CSRD disclosure requirements will progressively begin applying from 2024 onwards (until 2028) applying to all large companies and almost all SMEs,
- Germany is an interesting note, as from January this year, they have brought in the Supply Chain Due Diligence Act
- The AMF is proposing the introduction of minimum environmental requirements for financial products to meet SFDR regulations
- UK is in the thick of FSB’s TFCD alignment, which echoes a similar story across in Canada.
- The BIS, ISSB and IFRS are all updating ESG international reporting standards as we explain in our ESG analysis here
- Europe intends to set an aggressive agenda to reduce reporting requirements by 25%
- UK BoE/ FCA continue to study the data collection agenda RegCast here paper here March 2023
- The FSB Standing Committee on Standards Implementation is investigating strategies following its report on COVID-19 exit strategies
29 June NextGen SupTech and RegTech
JWG will be researching the implementation agendas for regulators, regulated and their suppliers in the run-up to our next seminar.
20+ experts will be speaking on 5 panels to discuss JWG’s independent reserach:
- RegTech/ SupTech engagement models
- Quality trade and transaction reporting
- Data crossroads: Prudential ‘top down’ and transactional ‘bottom up’ alignment
- Winning the ESG data marathon
- Reporting system priorities
For the complete agenda with links to the research see here.
Registrants will have 6 months to access the event and you can still register to access the research and the recordings.
Our 29 June global, virtual seminar will follow a similar format to the 22 March and provide and invaluable, global opportunity to get up-to-date with emerging trends as well as practical advice from experts – so don’t miss out!
Let us know if you would like to help shape the agenda and sponsor a panel. Register today and chart your course towards reporting success!