Whitepaper

MiFID II post-trade reporting: The importance of 3-way reconciliations

What is MiFID II?

Following the G20 meeting in 2009, EU member countries agreed to increase the transparency of global financial markets through new regulation. This regulation became known as MiFID and, later down the line, MiFID II.

The introduction of MiFID II meant that rules were harmonised not only for member states but also for those firms with EU clients.

MiFID II transaction reporting

MiFID II requires firms to submit post-transaction reporting to regulators to ensure that over-the-counter (OTC) derivatives are properly reported to a trade repository and cleared through a central counterparty.

Although firms have been aware of these reporting obligations for some time, sanctions and penalties issued for breaches quadrupled between 2019 and 2020. 613 sanctions were issued for 2020 alone, costing member states around €8.3 million.

Firms continue to incur penalties because a staggering 97% of firms submit MiFID II reports containing inaccuracies. Perhaps worse, 87% of those firms were unaware of those errors and felt reports were sufficient to satisfy regulators.

A better understanding of MiFID II reporting requirements

The gap between perception and reality looms large when it comes to MiFID II transaction reporting. All firms under the MiFID II umbrella would benefit from a better understanding of reporting requirements to avoid future penalties.

Download the full paper to learn:

  • The top reasons why firms struggle with reporting requirements
  • How MiFID II affects investment firms
  • What reporting requirements are in simple terms
  • The function of reconciliations in post-transaction reporting
  • How intelligent automation can optimise and simplify MiFID II 3-way reconciliations
  • Global implementation of MiFID II reporting requirements

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