“As the scrutiny over data quality increases, it’s vital that firms have technology that enables them to put robust controls in place to ensure the accuracy and completeness of their data, yet retain the agility necessary to respond fast to inevitable changes.”
Duco has announced the rollout of a no-code solution to help firms meet data quality requirements of the upcoming EMIR Refit.
The UK cloud-based data automation company aims to provide firms with the agility they need to ensure the accuracy, completeness, and timeliness of trade reporting data and adapt quickly as regulatory requirements change.
“EMIR Refit is just the latest in a long list of regulatory changes for firms”
James Maxfield, Head of Product and Solutions, Duco, said: “The EMIR Refit is just the latest in a long list of regulatory changes for firms. As the scrutiny over data quality increases, it’s vital that firms have technology that enables them to put robust controls in place to ensure the accuracy and completeness of their data, yet retain the agility necessary to respond fast to inevitable changes. Duco customers are already able to cover a wide variety of transaction reporting use cases and our significant investment in our transaction and trade reporting solutions will only strengthen the ability to ensure accurate, complete reporting data.”
According to the London-headquartered regtech firm, over 10,000 users across more than 30 countries process billions of data records every week using the platform.
Duco also has offices in New York, Boston, Wroclaw and Singapore, as it caters to global banks, investment managers, insurance firms and challenger Fintech companies, such as Societe Generale, ING, Man Group, and Currencycloud.
The company’s mission is to give firms the tools they need to increase business agility, reduce risk, stay compliant with regulation, and dramatically improve efficiency.
4 examples of profound changes for firms reporting derivatives trades
Firms reporting derivatives trades to Trade Repositories (TRs) will face a profound change in data and reconciliation requirements with the introduction of EMIR Refit.
The regulation will require firms to remap their existing data processes, adapt to new data types and ensure they can rapidly detect reporting errors.
An example of reporting changes included in Phase I of the EMIR Refit, which goes into effect on 19 April 2024:
- There are 89 new reportable fields, while 15 have been removed and others have seen changes to their names, formats or definitions;
- Firms will have just seven days to spot and notify the trade repository of any reporting errors;
- Additionally, there’s the potential for increased regulatory divergence in the UK due to Brexit as the Financial Conduct Authority (FCA) and the Bank of England develop their framework;
- ESMA guidelines set out specific requirements for ensuring the accuracy of reports, increasing the importance of reconciling the data sent to regulators and TRs to identify any data quality issues.
Phase II, which follows two years after, will include even more reconcilable fields.
Duco argues that firms using legacy reconciliation systems will struggle to adapt to the current – and future – changes, especially with the regulators’ increased focus on accuracy, completeness and timeliness of data which is now enshrined in the regulation.
These systems struggle with the complexity of derivatives data, are hard-coded to a particular format and require extensive IT support to make changes.
Duco platform’s no-code functionality allows firms to rapidly remap existing processes or build new ones without technical knowledge. The self-service cloud solution also offers firms a wide range of data integrity capabilities: from controlling upstream intersystem data to ensuring downstream data integrity.
In conclusion, Duco helps firms reconcile sent and received data with the TRs and regulators post-reporting, to ensure accurate reporting and avoid errors and fines.