ISDA analysis finds SFTR dual-sided obligation among main drivers of regulatory reporting costs

Finadium Editorial Team
The International Swaps and Derivatives Association (ISDA) has submitted an analysis of the costs of regulatory reporting, which proposes where savings can be made most effectively in response to the European Securities and Markets Authority (ESMA) call for evidence on simplification of financial transaction reporting. The analysis supplements a joint response with the Association for Financial Markets in Europe, FIA and the Global FX Division of the Global Financial Markets Association.
The responses supported many of the arguments put forward in the original response, with the most impactful cost saving identified as the delineation by instrument (OTC derivatives under the European Market Infrastructure Regulation and exchange-traded derivatives under the Markets in Financial Instruments Regulation) as proposed under Option 1a. There was also strong support for single-sided reporting and the removal of pairing and matching requirements.

In the section “Main cost drivers” and “key issues related to multiple regulatory regimes with duplicative or inconsistent requirements”, there were three primary items:

  • Frequent regulatory changes and lack of flexibility to enable a phased implementation, synchronization and coordination of the changes in the different reporting regimes.
  • Dual-sided reporting obligation under EMIR and SFTR. 
  • Duplicative reporting of the same derivative instruments under MiFIR, EMIR, and REMIT

Read the full analysis

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