2024 is a big year for financial trading operations and compliance teams charged with meeting mandatory transaction reporting obligations.
On The Horizon
As if you don’t already have enough on your regulatory reporting plate, the next phase of the ASIC Rewrite comes into force in October 2024. Will you be ready in time?
The ASIC Rewrite, EMIR Refit and a host of other regulatory reporting obligations and challenges require a huge effort on the part of operations and compliance teams in financial firms operating in multiple regulatory jurisdictions.
Major Changes, Challenges and Impacts
APAC regulators are seeking to coordinate rule changes and timelines for ‘maximum international alignment’ across Australia, Japan, Singapore and Hong Kong regulatory jurisdications. Maximum alignment creates major challenges with respect to meeting 2024 timelines for implementing regulatory reporting changes major challenges with respect to meeting 2024 timelines for implementing regulatory reporting changes.
The ASIC Rewrite is a huge initiative impacting multiple asset classes and requiring reporting of 104 data fields in the new ISO XML 20022 format from 21 October 2024 (with a deadline to update existing trades of 20 April 2025). (MAS has indicated that it will impose similar regulatory reporting obligations in the same timeframe.)
SUCCESSFULLY NAVIGATE ASIC REPORTING CHANGES
Experience led, technology-enabled
It’s hard to argue with the noble ambition of greater global alignment of derivatives reporting regimes</span> and to the harmonisation of international standards for transaction reference data (LEIs, UTIs, UPIs etc.)
However, satisfying new reporting rules is an enormous challenging and resource burden, particularly when operating in multiple reporting jurisdictions.
Other key impacts of the ASIC Rewrite:
Safe Harbour Repeal
Removing ‘safe harbour’ for delegated reporting. Require eligible firms to prove robust oversight in submission monitoring.
Expanded Product Reporting
Inclusion of an extended product set within the purview of “lifecycle” reporting is essential to meet regulatory requirements.
Provision Streamlining
Removal of transitional provisions and consolidation of associated exemptions, with associated back reporting obligations.
RECONCILE 100% OFTRANSACTIONS TO SOURCE
Regulatory Compliance
Firms that do not have full ‘reconciliation to source’ systems in place in 21 October 2024 will be in breach of new ASIC regulation, subject to costly remediation and potential financial penalties and sanctions.
Novatus En:ACT is the only SaaS solution that performs reconciliations across 100% of transactions, using source data from OMS/EMS platforms and files sent to the regulator.
Contact Us for an ASIC Rewrite Readiness Check
