[ T H O U G H T L E A D E R S H I P | D T C C ] message scheme for derivatives CDE , trade , collateral and valuation data will need to be normalised to meet this new standard – tedious work that many firms are likely to need help in completing .
“ The strain on internal staff , processes and platforms caused by ever changing regulations have led some firms to turn to one or more third-party solutions providers to deliver discrete preand post-reporting functionality ,” describes Wotton . “ But the result can be a patchwork of solutions that are not integrated with one another and require multiple connections ,” he continues .
Furthermore , use of solutions from different providers can deprive firms of the comprehensive , crossjurisdictional regulatory coverage they need to manage pre- and post-reporting activities for all reporting regimes , each of which has varying rules . Without a unified solution , firms could face increased compliance risk and cost .
Addressing pre- and postreporting needs Given the trade reporting challenges ahead – including the continuing , regime-specific changes to derivatives mandates , the complexity of Securities Financing Transactions Regulation ( SFTR ) reporting and the sheer difficulty of managing trade reporting across multiple asset classes and jurisdictions – a unified , single-vendor suite of services can help firms mitigate risk , enhance operational efficiencies , and reduce costs associated with regulatory reporting compliance . One such solution is the DTCC Report Hub .
Launched in early 2020 and
Val Wotton , DTCC ’ s Managing Director , Product Development and Strategy of Repository and Derivatives Services
expanded in December 2020 with DTCC ’ s acquisition of the Compliance Management Reporting System platform ( CMRS ) from Publicis Sapient , DTCC Report Hub enables firms to manage their global derivatives , Markets in Financial Instruments Directive II ( MiFID II ) and SFTR pre- and post-trade reporting requirements with a single vendor solution .
For firms that have solutions developed in-house , a move to DTCC Report Hub frees up staggering amounts of staff time and internal resources . DTCC Report Hub ’ s single-vendor model provides the consistent , streamlined functionality that is generally missing when firms utilise multiple vendors .
Wotton explains that “ the DTCC Report Hub platform is a game changer for pre- and post-trade reporting services . By delivering a unified , singlevendor pre- and post-reporting platform , firms can consolidate reporting activities for multiple jurisdictions – US , UK , Europe , Canada , Israel , Singapore , Australia , and Hong Kong – and be prepared for forthcoming rule additions and changes .” This breadth of coverage can help firms maximise their operational efficiencies and compliance-risk mitigation , reduce costs and free-up staff to focus on other priorities . With its extensive suite of pre-reporting services , DTCC Report Hub streamlines the complex workflows required to prepare trade , collateral , and valuation data for submission to TRs or ARMs . Starting with data translation and enrichment – including to accommodate the ISO 20022 messaging scheme – this suite provides jurisdictional eligibility analysis , a customisable rules engine and advanced exception management and reprocessing .
Closing the reporting loop In addition to interfacing with TRs and ARMs to facilitate trade submissions , DTCC Report Hub also delivers the post-reporting functionality . Its reconciliation tool applies reporting completeness and accuracy checks on TR end-ofday reports against a client ’ s internal systems . DTCC Report Hub can also provide extensive data analytics to help firms better manage reporting completeness , accuracy , and timeliness .
“ The trade reporting landscape continues to evolve , and we are committed to continuously improving , innovating , and reimagining how to best serve our clients as we help them comply with the various regulations that continue to challenge reporting firms ’ operations ,” says Wotton .
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