Dealers are lambasting onerous EU requirements to notify clients of all errors and omissions, writes Risk. New reporting rules in Europe are causing dealers to send a tsunami of trade error reports to their clients – at huge expense and, some say, for little practical value.
One senior reporting expert at a US bank speaking to Risk estimated that meeting the requirement costs at least $1 million a year due to the vast volume of messages that must be sent. “It’s costing us a fortune by telling all these little clients that they’ve got 10 trades wrong.”