One example is the requirement for trading venues to record and check vast amounts of data — some of which will come from the venue’s users, who will all need an internationally-recognised unique 20-character number known as a Legal Entity Identifier.
Complying with this rule is then complicated if you are trading via an Asian, rather an EU-based entity. “In that case, reporting requirements fall to us, which requires collection of personal data,” says Ben Pott, head of European affairs at Nex Group, which operates a bond and currency trading venue in London.
European firms’ preparations for Mifid II in January 2018 will likely be hit by the introduction of new European reporting standards just two months earlier, the head of regulatory reporting at Nex Group has warned.
NEX Group’s regulatory reporting business has chosen to set up operations in Sweden to ensure it can continue to provide services to firms in the European Union once the UK leaves the bloc.
NEX Regulatory Reporting, which helps banks and investors meet new regulations, chose Stockholm because of NEX’s existing presence in the city.
Speaking at the Profit & Loss Forex Network New York conference, panellists outlined how they think the application of fintech solutions will shape the FX industry going forward.
David Walker, Infinity Programme Manager at NEX Traiana claimed that enabling multiple firms to have real-time access to trade information via a distributed ledger would provide a tremendous amount of value to market participants, while not proving overly disruptive to existing operational processes.
Operational Risk Awards 2017: NEX Regulatory Reporting’s client customisation impressed judges. Financial institutions need strong expertise and technology to give them confidence in their regulatory reporting, and they also need to invest time and resources in validating the data that they report. Ultimately the risk can only be borne by the user, yet NEX Regulatory Reporting, which is powered by Abide Financial, shows it has faith in its product by deliberately not including contractual clauses that prevent the firm being sued by its customers.