Are You Ready for a No-Deal Brexit?
With a no-deal Brexit scenario becoming increasingly possible, firms must be more than ever ready to ensure the continuity of their reporting. Here, we analyse the most important issues firms need to consider with respect to their EMIR and MiFIR reporting obligations in the case of a no-deal Brexit. According to EMIR, EU counterparties must report their derivative transactions to an ESMA authorised Trade Repository (TR), while, under MiFIR, firms executing transactions in qualified financial instruments must report those transactions to an Approved Reporting Mechanism (ARM) or directly to their National Competent Authority (NCA). TRs are currently authorised and regulated by ESMA at an EU level (including UK-based TRs). ARMs are currently authorised and regulated directly by NCAs such as the FCA, AMF, Consob, CNMV, etc. In the case of a no-deal Brexit, UK-based TRs and FCA-authorised ARMs will no longer qualify as EU TRs and EU ARMs, while EU-based TRs and ARMs will not qualify as UK TRs and ARMs. A few UK-based TRs and ARMs have arranged to establish EU-based entities and obtained authorisation as EU-TRs by ESMA and EU-ARMs from EU NCAs. This will allow them to continue servicing their EU-based clientele in case of a no-deal Brexit. Since the FCA has put in place local regimes that are equivalent to EMIR and MiFIR, UK-based firms need to continue their reporting of derivative transactions to an FCA-authorised TR and of their executed transactions on financial instruments that fall into the scope of FCA’s FIRDS version to an FCA-authorised ARM (see: https://www.fca.org.uk/markets/market-data-regimes/fca-firds-and-transaction-reporting). The FCA expects that firms used to transaction reporting in the UK will see very little change to the underlying mechanics or logic of reporting, something that is key to achieving as smooth a transition as possible. Also, firms must be ready starting from day one. The FCA made it clear that there will be no transitional period or holiday following Brexit. The expectation is that all firms should continue to be compliant with their reporting requirements. What firms need to consider for MiFIR An EU firm currently reporting to a UK ARM will need to make arrangements in terms of integration and enter into a new agreement with an EU-based ARM, so as to be ready to immediately switch reporting to the EU ARM in case of a no-deal Brexit. Alternatively, the EU firm could consider reporting directly to its home NCA. The opposite scenario applies to UK firms. A UK firm currently reporting to an EU ARM will need to make similar arrangements with a UK-based ARM, so as to be ready to immediately switch reporting to the UK ARM in case of a no-deal Brexit. Alternatively, the UK firm could decide to report directly to the FCA. If an EU firm has a branch in the UK and the branch executes transactions in financial instruments falling under both the FCA FIRDS and ESMA FIRDS lists, the branch will likely have an obligation to report those transactions to either a UK ARM or directly to the FCA. Furthermore, the firm’s head office in the EU will have to report the same transaction to an EU ARM or its NCA. So, it is possible that an EU entity with a UK branch will have a dual reporting obligation. The opposite scenario applies to UK firms. If a UK firm has a branch in the EU and the branch executes transactions in financial instruments falling under both the FCA FIRDS and ESMA FIRDS lists, the branch will likely have an obligation to report those transactions to an EU ARM or directly to the host NCA. At the same time, the firm’s head office in the UK will have to report the same transaction either to a UK ARM or directly to the FCA. Moreover, the transmission of orders specified in Article 4 of Commission Delegated Regulation (EU) 2017/590 between UK and EEA firms would no longer be applicable following a no-deal Brexit since UK firms will not qualify as an EU reporting firm. As such, EU firms that currently have no obligation to report due to the transmission of orders to UK-based firms under the aforementioned regulation will be deemed to have executed a transaction and therefore obliged to report in a no-deal Brexit scenario. Lastly, the reporting of UK clients will likely need to change due to fact that the UK would become a third country in a no-deal Brexit. More specifically, EU firms will need to change the identifier used for UK nationals (i.e. use of a passport number and then CONCAT instead of National Insurance numbers). Additionally, firms need to consider how they prioritise the nationality they report for multinational individuals where one of the nationalities is the UK (i.e. use the first EEA nationality, in alphabetical order, if there are more than one EEA nationalities and the same if there are more than one non-EEA nationalities). What firms need to consider for EMIR An EU firm currently reporting to a UK TR will need to make arrangements with an EU-based TR to be ready to immediately switch reporting to the EU TR in case of a no-deal Brexit. The opposite scenario applies to UK firms. A UK firm currently reporting to an EU TR will need to make arrangements with a UK-based TR so as to be ready to immediately switch reporting to the UK TR in case of a no-deal Brexit. FCA will become the UK authority responsible for the registration and ongoing supervision of TRs operating in the UK. UK branches of third-country firms and UK branches of EU firms will not fall under the scope of the UK EMIR reporting regime. Hence, they are not expected to report under the onshore UK regime. On the other hand, branches of established UK firms located outside the UK (e.g. EU branches) fall under the scope of the UK EMIR reporting regime and will be required to report details of their derivative transactions to an FCA-registered (or recognised) TR. As
Brexit: How Will It Affect Your Firm
Complyport Tech, in conjunction with its UK strategic partner, Complyport, is taking all the necessary actions to inform financial firms about Brexit and how this unparalleled event might potentially impact financial services across Europe. As we are inching closer to Brexit’s deadline, we have prepared a survey to gather information on the steps being taken by financial institutions when this becomes reality. This effort will also include sharing the findings with its participants so they are aware of how other financial institutions are preparing for Brexit. With this in mind, financial firms need to consider that they will be facing unique challenges and conditions that may require both a new understanding of our industry and advanced planning in order to avoid the many uncertainties that may lead to undesirable consequences. Through the power of synergy, this survey aims to prepare financial firms to face the potential risks that a “hard” Brexit scenario may bring to an already challenging 2020. Please complete the survey below and stay informed on how the UK financial services sector is preparing to transition into a post-Brexit Europe in the smoothest way possible.
Complyport Tech integrates with UnaVista TR for EMIR Reporting
London, 5 October 2020: Complyport Tech, the leading UK/EU regulatory reporting provider, and UnaVista, part of London Stock Exchange Group, are pleased to announce that they are expanding their strategic collaboration for EMIR Trade Repository (TR) Services. Complyport Tech is the trade name of Complyport Tech (UK) Limited and MAP Financial Technologies (Europe) Limited, the provider who first introduced a fully automated reporting solution for EMiR. Today, the award-winning technology firm supports more than 170 global B2B clients for their regulatory reporting needs. Complyport Tech’s integration with UnaVista’s Trade Repository (TR) for EMIR Reporting comes as a result of the extensive cooperation betweenComplyport Tech and UnaVista’s Approved Reporting Mechanism (ARM) for MiFIR and follows the winding down of CME TR and Abide’s discontinuation of services in this area. With time running out for CME/Abide clients in the process of migrating to a new regulatory reporting provider, a great number of regulated firms and institutions face the challenge of securing a new, long-lasting and reliable regulatory reporting partnership. Complyport Tech’s EMIR and MiFIR innovative reporting solutions, now integrated also with UnaVista’s TR and ARM, provide a fully-automated on-boarding process, allowing the uninterrupted transfer of any existing regulatory data in any format, under the support and regulatory guidance of one of London’s leading regulatory advisory firms, Complyport – Complyport Tech’s UK regulatory partner. This enables the seamless migration from CME/Abide or indeed from any other Trade Repository (TR) or third-party provider easily, effortlessly with zero time-gaps and under continuous guidance and regulatory advice. Complyport Tech commenting on this, reconfirmed their “commitment to offer state-of-the-art scalable solutions that simplify the way our financial services clients meet their regulatory requirements without encumbering their operational flexibility. By extending our collaboration with UnaVista and their EMIR Trade Repository (TR) service, we ensure that our clients will continue enjoying a best-in-class and cost-efficient EMIR solution, delivered via a single platform along with the rest of Complyport Tech’s offerings: MiFIR Reporting, ASIC Reporting, Best Execution Monitoring/Reporting, CRS/FATCA reporting, eKYC, AML Transaction Monitoring and Market Surveillance amongst others” Commenting on the partnership, Mr. Michael Leach, managing director of global business development at UnaVista, said: “We are delighted to see the expansion of our collaboration with Complyport Tech to support market participants in migrating their regulatory reporting from CME’s Nex and Abide services to UnaVista. Together with Complyport Tech, we offer a fast and efficient response to this demand.” To learn more about Complyport Tech services please click on our Solutions section.
REGULATORY ALERT – Important changes to MiFIR reporting proposed by ESMA
On the 24th of September ESMA launched a Consultation Paper aiming to simplify the current reporting regimes and enhance the quality of the data reported by ensuring consistency among various reporting and transparency requirements. Some of the key amendments proposed by ESMA: UCITS management companies and AIFMs providing one or more MiFID services to become subject to the transaction reporting obligation. Bring in scope of the reporting obligation derivative instruments traded through Systematic Internalisers. A revision of the scope of indices that are subject to the reporting obligation. Linking all transactions pertaining to the same transaction chain with a unique identifier. The consultation phase will close on the 20th of November and ESMA intends to submit its final review report to the European Commission in Q1 2021. As always,Complyport Tech is at the forefront of developments and stands ready to assist regulated entities to meet their reporting needs with innovative, efficient and robust solutions.
Complyport Tech, a certified Aggregator of DTCC, can fully support your ASIC Reporting requirements.
Following DTCC’s recent announcement, all market participants affected by CME’s Group decision to cease its Australian trade repository services, are encouraged to complete their onboarding process to their new vendor before the end of November 2020, so that T+1 deadline will not be missed. Complyport Tech, being a leading award-winning UK and EU regulatory technology provider, is integrated with DTCC Data Repository (Singapore) PTE Ltd (DDRS) as an aggregator and can report on behalf of its clients their reporting obligations under the Australian Securities & Investments Commission (ASIC) requirements. Complyport Tech’s ASIC Reporting Service maps all compulsory trade data to the format required as per ASIC derivative transaction rules. The ASIC-DTRS Reporting Service provides the ability to extract, convert, reconcile and submit the relevant trades and positions required under the OTC Derivatives reporting rules. Furthermore, Complyport Tech also maintains and updates pertinent fields to reflect any latest ASIC derivative transaction reporting requirements. For more information on Complyport Tech’s ASIC Reporting Service please click here.
Extension to the reporting deadline for CRS and FATCA submissions. New date: 17 July 2020
The Cyprus TAX Department announced an extension to the reporting deadline for CRS and FATCA submissions, from 30 June 2020 that was initially set, to 17 July 2020. Complyport Tech can fully support your business’ regulatory reporting needs. ΜΑΡ CRS/FATCA Reporting Service provides a user-friendly approach to receiving, validating, transforming and submitting the relevant information required under the CRS/FATCA reporting and due diligence rules. This service is delivered via our single platform Polaris, together with the rest of its reporting offerings and our team of experts’ impeccable support services. ΜΑΡ CRS/FATCA – Key Features Cost-efficient integrated reporting solutions provided under a single platform. Highly automated and scalable solution that can report as many accounts as you have. Flexible in the way it receives data, either via standard templates or raw data. Multiple reporting health checks for both content and schema and automatic filtering of erroneous entries. Automatic conversion of data to XML and separation of files based on tax residency. Submissions to various tax authorities worldwide. On-going communication with regulators to ensure the system reports reflect regulatory updates and changes.
Switch to Complyport Tech SWIFTLY, SEAMLESSLY and at NO EXTRA COST!
Complyport Tech is fully equipped to support any CME Group client affected by the firm’s recent decision to close down its trade repositories in Australia and Europe by the end of November 2020. Seamless migration experience with MAP Switch service Complyport Tech’s fully automated on-boarding process ensures client’s switch over from any Trade Repository or third party provider swiftly, seamlessly, and at no extra cost. MAP Switch is a comprehensive, cost-efficient and integrated solution with a 100% success rate that is delivered via a single platform along with the rest of Polaris’ offerings and our experienced and dedicated team’s impeccable support services. Book an appointment TODAY to find out how you can easily switch over to Complyport Tech. Complyport Tech Products EMIR reporting MiFID II/MiFIR reporting ASIC reporting SFTR reporting FATCA and CRS reporting Best Execution Monitoring RTS 27/28 reporting AI-Enabled AML Transaction Monitoring and Screening Trade Surveillance (Market Abuse) eKYC (Screening, eIDV and Document Authentication) For more information about our products and services please contact our team at +44 207 060 5540 / +357 2535 1335 or via email at info@complyporttech.com. About Complyport Tech Complyport Tech is a leading and award-winning regulatory technology provider for the financial services industry, specialising in reporting solutions arising from the requirements of a number of complex and challenging international regulations such as EMIR, MiFID II/MiFIR, ASIC, SFTR, FATCA and CRS.Complyport Tech also provides innovative and comprehensive solutions for Best Execution Monitoring, RTS 27/28 reporting, AI-Enabled AML Transaction Monitoring and Screening, Trade Surveillance (Market Abuse), and eKYC (Screening, eIDV, Document Authentication)
15 Days Left to Submit Your CRS & FATCA Report! Are You Ready?
The reporting deadline of the annual CRS and FATCA submissions for several participating jurisdictions is drawing near, as it is set for between the end of June and August 2020. CRS & FATCA Reporting Requirements The Common Reporting Standard (CRS) requires financial institutions to report annually to their local tax authorities information on their clients that are tax residents of other participating jurisdictions to be passed on to the relevant tax authorities. The Foreign Account Tax Compliance Act (FATCA) requires financial institutions to report annually to their local tax authorities information on their USA clients to be passed on to the US tax administration. The specific reporting deadline for each jurisdiction is provided below: Challenges & Risks Firms face a number of challenges and risks that need to be addressed in order to proceed with the pertinent submissions before the deadline: Challenges: Analysis & interpretation of the requirements, which consist of over 300 pages of guidelines to read. More than 65 fields per record to complete. Complicated multilevel XML files. Different jurisdictions with each posing a different set of challenges. Risks: Incorrect completion of CRS and FATCA submissions. Failure to meet the reporting deadline and overall requirements. Costly investment in resources to help you file the relevant submissions, which in turn may place a burden on your budget. Disruption of your daily operations. Incorrect or false submissions that may result in a withholding penalty to specific payments. . How can Complyport Tech assist you? Complyport Tech can fully support your business’ regulatory reporting needs. ΜΑΡ CRS/FATCA Reporting Service provides a user-friendly approach to receiving, validating, transforming and submitting the relevant information required under the CRS/FATCA reporting and due diligence rules. This service is delivered via our single platform Polaris, together with the rest of its reporting offerings and our team of experts’ impeccable support services. ΜΑΡ CRS/FATCA – Key Features Cost-efficient integrated reporting solutions provided under a single platform. Highly automated and scalable solution that can report as many accounts as you have. Flexible in the way it receives data, either via standard templates or raw data. Multiple reporting health checks for both content and schema and automatic filtering of erroneous entries. Automatic conversion of data to XML and separation of files based on tax residency. Submissions to various tax authorities worldwide. On-going communication with regulators to ensure the system reports reflect regulatory updates and changes. About Complyport Tech Complyport Tech is a leading and award-winning regulatory technology provider for the financial services industry, specialising in reporting solutions arising from the requirements of a number of complex and challenging international regulations such as EMIR, MiFID II/MiFIR, SFTR, FATCA and CRS. Complyport Tech also provides innovative and comprehensive solutions for Best Execution Monitoring, RTS 27/28 reporting, AI-Enabled AML Transaction Monitoring and Screening, Trade Surveillance (Market Abuse), and eKYC (Screening, eIDV, Document Authentication). For more information on ΜΑΡ CRS/FATCA Reporting Services, please visit our website at www.complyporttech.com or contact our team at +357 2535 1335 / +44 207 060 5540 or via email at info@complyporttech.com.
CME Group to wind down its trade repositories in Australia and Europe: Possible impact in the market and challenges faced by affected entities.
Market Impact The recent announcement of CME to wind-down its trade repositories in Australia and Europe, Abide Financial, and NRR has caught many by surprise. In this article we discuss the aftermath of this development, its market impact as well as the challenges faced by affected reporting entities. Alexandros Costantinou, Director of MAP S.Platis and Complyport Tech explains: “If a reporting entity has not been directly or indirectly reporting to CME, then we do not expect any material impact. However, this still remains to be seen. On the other hand, reporting entities that have been reporting to CME, either directly or indirectly, will definitely be impacted. These reporting entities will need to work with a new Trade Repository (TR) or Third Party Provider. Practically, this means that they need to negotiate new agreements, switch their reporting, migrate data and open positions and ensure consistent reporting, among others.” According to ESMA, as of July 2019 CME TR had 146 clients and a market share of around 12% in Europe, which represents the 4th largest volume market share out of six active TRs. Although CME TR was relatively small-to-medium size in terms of clientele and volume, CME Group’s Abide Financial and NEX Regulatory Reporting businesses have been key players in the market. Combined with CME’s presence in Australia, it looks like a significant number of market participants will be impacted by this development. Additionally, Australian reporting entities will face a unique challenge since the only alternative choice of TR in Australia at the moment is DTCC Data Repository. Another issue to consider is that CME announced that the wind-down process would be completed by 30 November 2020 with the final reporting date being 13 November 2020. This means that affected entities will have less than 6 months to prepare for the necessary changes. For some entities, this short timeframe, coupled with the COVID-19 situation, will result in a time-sensitive, substantial and costly administrative burden. Despite the above, there are solutions for those affected entities to minimize the impact and smoothen the transition. For example, Complyport Tech, via its fully automated processes, is prepared to help affected entities migrate from CME and Abide swiftly, seamlessly and at no extra cost, under the support and guidance from its dedicated compliance support teams in the UK and Europe and its Australian partners. The role of Trade Repositories in the derivatives market According to the latest ESMA report, Trade Repositories (TR) continue to play a central role in enhancing the transparency of derivatives markets and reducing risks to financial stability. Bloomberg Trade Repository Limited (BTRL) became the first TR to renounce its registration. The withdrawal became effective on 1 March 2019 after ensuring that all BTRL clients were transferred to an active TR of their choice. The expected wind-down of CME is different to the circumstances involving BTRL as the volume of BTRL was very small compared to CME. Despite this, given the integral part that TRs play in the derivatives market and the upcoming Securities Financing Transactions market through SFTR reporting, we do not expect any changes for the time being to the framework and structure of TRs in the EU. Of course, a lot remains to be seen on how well the market adapts to this new development, one that is certainly worth monitoring. How Complyport Tech can assist all the potentially affected entities? ΜΑΡ FinTech can assist clients to switch over from any Trade Repository or third party provider (including clients of CME Group affected by the latest developments) in the following ways: Ensure accurate reporting via customised health-check reviews Ensure smooth transition with minimum effort Automate your reporting and minimize the risk of errors Facilitate reconciliations between back office data and data reported Validation and enhancement of data Support delegated reporting Ensure timely reporting Assist with data transfers and especially outstanding positions to a new Trade Repository Store your reported transaction data Provide tailored and comprehensive support Compliance Q&A Service Complyport Tech’s Transaction Reporting Solution is a comprehensive solution with a high level of automation and extended field validation that is designed to assist firms comply with EMIR’s and MiFIR’s transaction reporting requirements. Our solution allows clients to enjoy a cost-efficient, integrated solution delivered via a single platform, together with the rest of Polaris’ offerings and our team of experts’ impeccable support services. For more information onComplyport Tech’s Transaction Reporting Solution, please visit our website at www.complyporttech.com or contact our team at +357 2535 1335 / +44 207 060 5540 or via email at info@complyporttech.com.
Migrate from CME and Abide to Complyport Tech
Complyport Tech, the award-winning and leading regulatory reporting provider, together with leading UK compliance support firm, Complyport, can help you switch over from CME and Abide FAST, SEAMLESSLY and at NO EXTRA COST, through our fully automated processes, and under the support and guidance of Complyport’s dedicated compliance support team in London! CME has announced last Friday that it shall wind-down its European and Australian Trade Repositories, Abide Financial, and NRR by 30th of November 2020. Complyport Tech, is the First provider in Europe to have reported under EMIR since February 2014 with 1 Billion+ transactions successfully reported thus far. We currently serve over 160 B2B global clients and have been recognised as having the Best RegTech Reporting Solution for 2019 by Finance Magnates London and named as one of the 100 most innovative RegTech companies in the world for 2020 by RegTech Analyst. Follow this link to learn more about us! With 20 years of experience and expertise in the UK financial services sector, Complyport’s UK-based teams of consultants currently provide regulatory and compliance support, including financial and regulatory reporting, to over 200 FCA regulated entities. Book an appointment TODAY to find out how you can easily switch over to Complyport Tech. How can Complyport Tech’s Transaction Reporting Solution assist you comply with your regulatory reporting obligations? Click HERE to learn more! Complyport Tech Products: EMIR reporting MiFID II/MiFIR reporting SFTR reporting FATCA and CRS reporting Best Execution Monitoring RTS 27/28 reporting AI-Enabled AML Transaction Monitoring and Screening Trade Surveillance (Market Abuse) eKYC (Screening, eIDV and Document Authentication) For more information about our products and services, please visit our website at www.complyporttech.com or contact our team at +44 207 060 5540 or via email at info@complyporttech.com. About Complyport Tech Complyport Tech is a leading and award-winning regulatory technology provider for the financial services industry, specialising in reporting solutions arising from the requirements of a number of complex and challenging international regulations such as EMIR, MiFID II/MiFIR, SFTR, FATCA and CRS. Complyport Tech also provides innovative and comprehensive solutions for Best Execution Monitoring, RTS 27/28 reporting, AI-Enabled AML Transaction Monitoring and Screening, Trade Surveillance (Market Abuse), and eKYC (Screening, eIDV, Document Authentication).