Derivatives Reporting - G20

In the aftermath of the Great Financial Crisis of 2008, the Group of 20 (G20) identified that the largest conduits for contagion were uncleared derivative contracts traded off-venues/exchanges between banks, insurance firms, investment firms, funds, and other non-financial entities. The G20 in their 2009 Pittsburgh Declaration set their intention for the said uncleared OTC Derivatives to be reported to Trade Repositories for scrutiny by National Competent Authorities (e.g. Central Banks, Securities Commissions etc.).  

Out of that declaration, various jurisdictions developed their own OTC derivative reporting regimes. In the EU and the UK, the respective reporting regime was incorporated under the “European Market Infrastructure Regulation – EMIR”. In Australia Australian Securities and Investments Commission enacted the “ASIC Transaction Rules (Reporting)”, in Singapore the Monetary Authority put in place the “Securities and Futures (Reporting of Derivatives Contracts)” rules, while in Canada the Securities Commissions of each Province/Territory of Canada harmonised their reporting regimes under a Multilateral Instrument issued by the Canadian Securities Administrators (CSA), etc. The complexity and specificity of these reports require a thorough understanding of the regulations to ensure compliance. Firms with an international foothold may find it extremely cumbersome to keep up with the pace of change of the aforesaid regimes.   

Services  

Complyport offers comprehensive advisory support and health check services to help firms navigate and comply with the stringent reporting requirements under the aforesaid regimes.  

Our services include:  

Reporting Health Checks: We scrutinize reports submitted to TRs for accuracy and completeness of submissions. 

Ongoing Consulting: We offer continuous support and consulting services for any ongoing reporting issues, ensuring your firm remains compliant as regulations evolve.  

Custom Reporting Templates: We design and provide customised reporting templates tailored to each firm’s specific needs and reporting obligations.  

Gap Analysis for Regulatory Changes: Our team conducts thorough gap analyses to prepare your firm for upcoming changes, ensuring you are ready for new reporting requirements.  

Bespoke training regarding reporting triggers, identifiers to reports (e.g. UPIs, UTIs, ISINs etc.), data elements to be included in said reports for specific instruments traded by each firm, how to report under various trading scenarios, and many more.  

Complyport also assists small non-financial firms (who may be in scope of some of the aforesaid rules) that may enter into OTC Derivative Contracts in an infrequent basis, such as e.g. EMIs that occasionally hedge their FX exposures with FX Forwards/Swaps/Options, or Renewable Energy Producers that may enter into Virtual Power Purchase Agreements – VPPAs. Complyport may take upon itself to analyse the respective derivative contract agreement (e.g. ISDA, EFET or bespoke/internally drafted), extract the necessary economic terms from the contract that must be submitted under the relevant reporting regime, draft and submit the derivative report with minimal or no hassle for our clients.  

Key Benefits  

Enhanced Compliance: By leveraging our expertise, firms can significantly improve their compliance with G20 reporting requirements, reducing the risk of regulatory penalties.  

Accurate Reporting: Our meticulous review processes ensure that your reports are accurate, complete, and in line with regulatory expectations across jurisdictions.  

Tailored Solutions: We offer customised services and templates that are specifically designed to meet the unique needs of your firm, providing flexibility and precision in your reporting processes.  

Proactive Support: With ongoing consulting and gap analysis, we help your firm stay ahead of regulatory changes, ensuring continuous compliance and operational efficiency.  

For the EU and the UK we also offer similar services for reporting under Art. 4 of SFTR and Art 26 of MiFIR. 

Complyport also offers full reporting solutions for G20 Derivatives, MiFIR and SFTR reporting (EU & UK).  

Our Experts   

Our advisory support and health check services are designed to enhance your firm’s compliance, accuracy, and readiness for regulatory changes in the aforesaid jurisdictions. Partnering with Complyport ensures that your reporting processes are not only compliant but also optimised for efficiency, allowing you to focus on your core business activities with confidence.