In recent years, regulators have placed a greater emphasis on financial transparency, particularly through transaction reporting requirements. In 2018, the European Securities and Markets Authority (ESMA) introduced the Markets in Financial Instruments Regulation (MiFIR), which requires financial firms to report transaction data to regulators on a daily basis.
MiFIR covers a wide range of financial instruments, including equities, bonds, derivatives, and structured finance products. It requires firms to report details such as the price, quantity, and time of execution, as well as the identification codes for the firms involved in the transaction.
The aim of MiFIR is to increase transparency in financial markets and improve the ability of regulators to monitor and detect market abuse. By requiring firms to report transaction data in a standardised format, regulators can more easily identify patterns of suspicious behaviour and investigate potential cases of market manipulation.
However, complying with MiFIR can be a complex and time-consuming process for financial firms. Reporting systems Must be accurate, reliable, and timely, and the necessary controls must be in place to manage the risks associated with transaction reporting.
Firms must also be able to demonstrate to regulators that they have effective procedures and contingencies in place, and that they are able to quickly identify and resolve any issues that arise.
How Can Surety Help?
Managing the compliance obligations associated with regulatory change such as MiFIR can be overwhelming for compliance staff. This is where Surety comes in.
Surety is a central compliance brain that helps firms to simplify the process of regulatory compliance. Our platform enables firms to align and assign their controls to the regulations that apply to them, and to easily evidence their compliance to regulators.
With Surety, firms can quickly spot regulatory overlaps and underlaps, report to stakeholders, and drive forward change projects by being fully informed. This gives firms the evidence and insights they need to successfully implement regulatory change projects or assess their impacts or exposures from new/changing regulation.
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