Corporate Advisory

Transaction Reporting – FCA fine is a timely reminder to all

 

Earlier in the week the FCA issued its first enforcement action against a firm for failing to report details of trading in exchange traded derivatives, under the European Markets Infrastructure Regulation (EMIR), and reflects the importance the FCA puts on this type of reporting.

Mark Steward, FCA Executive Director of Enforcement and Market Oversight said: “Effective market oversight depends on accurate and timely reporting of transactions. The obligations under EMIR, as with MiFID, are key aspects of such oversight.  

“It is vital that reporting firms ensure their transaction reporting systems are tested as fit for purpose, adequately resourced and perform properly. There needs to be a line in the sand. We will continue to take appropriate action against any firm that fails to meet requirements.”

The fine again £34m Merrill Lynch which is the discounted figure, is a timely reminder to all that all forms of reporting to the regulator are taken seriously and one of their Risk measurement tools.

With EMIR reporting enhancements due now, MIFID II in January and SFTR later in 2018, if not already, firms need to ensure their regulatory reporting processes are robust and importantly governed