NEX Launches OTC Derivatives Trading Solution for ASIC Reporting

NEX Regulatory Reporting, a provider of regulatory reporting services and part of the NEX Group, announced today that it has launched a new solution for transaction and position reporting for over-the-counter (OTC) derivatives trading.

The solution helps both Australia-based firms and international companies trading in Australia to meet the OTC derivatives trade reporting requirements of the Australian Securities and Investments Commission (ASIC).

As each firm is different and Regulation changes from country to country, the solution gives clients an evaluation which details their specific ASIC transaction reporting requirements. This includes product-specific obligations, trading methodology and so on.

Once a firm has on-boarded the solution they will then connect to NEX Regulatory Reporting Hub. Here, their transaction data will undergo data normalisation, enrichment, determination and validation. This is to ensure that the data is up to scratch before being delivered to the licensed trade repositories - CME Group or DTCC ASIC.

OTC derivatives trade reporting enhances market transparency

ASIC originally introduced OTC derivatives trade reporting requirements back in 2013. The motivation behind the move was to improve Risk Management and enhance transparency in the market.

Under the requirements, firms can either report derivatives to a licensed ASIC trade repository as an 'end-of-day snapshot' or within a full lifecycle report. The service allows firms to choose which way they want to report their data as it has the capability to do both.

Commenting on the new solution, Joanna Davies, Head of NEX Regulatory Reporting, said: “As we expand our Asia-Pacific regulatory coverage, we’re pleased to launch our ASIC solution which will provide both snapshot and full lifecycle reporting to both CME Group and DTCC ASIC licensed trade repositories.

With the potential for certain derivatives to require full lifecycle reporting in the future, it is important that counterparties have access to a solution that is set up to handle a higher volume of data and the management of exceptions in preparation for increased reporting requirements.”

Jonathan Thursby, Executive Director and Head of Global Repository Services, CME Group, added: “Reporting firms connecting to CME Group can benefit from our global coverage, efficient technologies and dependable operations.

Now with connectivity to NEX Regulatory Reporting’s comprehensive suite of reporting capabilities, we are well-positioned collectively to provide our clients a total solution with clear benefits, even in the most complex environments.”