CFTC (USA) Reporting Solution

Summary of the regulation

CFTC reporting arose from the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Aimed at detecting and preventing systemic risk, it introduced the requirement for firms to report details of their derivatives to a swap data repository.

There are two kinds of reporting required to be made; real-time reporting of basic economic details of the trade (“Part 43” reporting) and reporting of the full details of the transaction at a later stage (“Part 45”), the deadline for Part 45 reporting depending on the counterparties executing the trade, the clearing arrangements, and whether it was executed on- or off-venue.

While CFTC reporting can be complex in some regards, the fact that the reporting obligation is single-sided (only one counterparty reports for any trade) somewhat reduces the burden on firms in scope. Theoretically, any firm trading derivatives in the USA could have a reporting obligation, but generally it is the larger counterparty who reports. For more information on how to determine the reporting counterparty, please refer to the UnaVista CFTC Reporting regulation page. 

The asset classes in scope for CFTC reporting are over-the-counter credit, commodities, equities, FX and rates derivatives. There is an additional requirement to report valuations of outstanding trades. Fortunately, UnaVista can assist in all of these areas, with its single, efficient template for reporting all these asset classes, and all types of reporting actions associated with CFTC reporting.

How UnaVista Can Help with CFTC Reporting

The UnaVista G20 Reporting solution – one single interface for your global derivatives reporting requirements

Firms with reporting obligations in multiple jurisdictions including reporting to the CFTC can use the UnaVista G20 Reporting solution to fulfil their reporting obligations under these multiple jurisdictions efficiently, using a single format for reporting.
UnaVista has partnered with the DTCC GTR, who maintain an CFTC-registered swap data repository, to submit transaction reports in the requisite format. The UnaVista G20 Reporting solution can be used to route to the DTCC CFTC swap data repository, performing all the requisite transformations and mappings in the process.

The UnaVista G20 Reporting solution offers users the following possibilities:

  • Save resources when conforming to multiple different data requirements. UnaVista offers a reporting format with no more than 150 fields for all asset classes across all reporting jurisdictions
  • Streamline your operational processes, with the reporting infrastructure for multiple jurisdictions accessible via one interface
  • Maintain a single gateway with UnaVista, for onwards routing to trade/data repositories worldwide

The UnaVista G20 Reporting solution can be today used for reporting under CFTC, ASIC, EMIR, MAS, the Bank of Israel, FinfraG and other reporting jurisdictions. A highly configurable software solution, it can be deployed alongside our suite of Rules Engine software capabilities to reformat, enrich, and transform data as required should firms require assistance transforming the data into the required format for the destination repository.

UnaVista G20 Reporting Data Flows

 

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

Benefit from our regulatory reporting experience

As a highly regulated entity itself, the London Stock Exchange Group already undertakes regulatory reporting on its own behalf. On top of this, we also operate the UK’s largest MiFID ARM, and an award-winning EMIR trade repository. We bring this regulatory expertise to bear in our excellent reputation for compliance, security, and thorough analysis of reporting requirements, resulting in reliable, efficient products and services.
Our products don’t just meet regulatory requirements – they exceed them, reducing the risk of incorrect, late or duplicate reporting.

Save the cost of middleware

You can submit reports in any structured format, UnaVista’s advanced technology then ingests the data, displays that data in a unified way for manipulation and then disseminates that information to regulators or counterparties in the desired format. This reduces the need for expensive middleware.

Have a system with smart validation

UnaVista does all the mandatory validation you would expect. But it also validates the data by checking it against the reference data sources you choose, such as ESMA’s list of regulated markets, MiFID eligible securities and the London Stock Exchange’s SEDOL Masterfile where appropriate. UnaVista offers a whole suite of exception management tools to manage records that have failed validation.

Improve your operational processes

You can set different levels of access for individuals or groups, so people only see the information you want them to see. You can also set as many mandatory audit steps as you like. As a result, you’ll know that the right checks are in place. You’ll also have a full audit trail if you need to check back over things at a later date.

Reconciliations - be confident you have been compliant

Regulatory authorities encourage firms to regularly review the integrity of their transaction reporting to ensure they have been successfully submitted. UnaVista assists with this process by enabling firms to reconcile between their own back-office data, the data held by UnaVista and the data held trade repository thus enabling firms reduce regulatory and operational risk.

Know what’s happening in your business at all times

You can receive alerts based on your custom tolerances and thresholds for things like transaction volumes or transaction size. This ensures you are never surprised late or by a problem of which you were unaware.

Get the management information you need

You can use UnaVista to monitor trends within your reporting, helping you identify where errors are recurring. You can use UnaVista to take a snapshot of all your transactions at any time, choose from a variety of report templates, or create your own custom report. You can even include a variety of charts from the customisable dashboards.

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