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A Strategic Approach to Reporting

Reaping strategic data benefits from mandatory cross-asset trade reporting projects.

A Strategic Approach to Reporting

Due to differing data standards and protocols across jurisdictions, interpretation is key when it comes to implementing the regulatory directives formulated at the Pittsburgh G20 summit.

The core principles of the G20 conclusions were meant to increase transparency and reduce counterparty risk around OTC derivatives. However, data and processing fragmentation has presented a huge challenge to effective compliance. In his paper published in the Journal of Securities Operations & Custody, Hugh Daly, General Manager of Message Automation for Broadridge, discusses the challenges of reporting cross-asset trades and analyzes the difficulties that can occur due to multiple asset classes being in use, product silos, lack of familiarity with reporting methodology and unclean data storage. 

Financial services firms face an ongoing series of storms rather than a single "tsunami" of regulation but those who have taken a siloed approach to each new regulatory obligation now face major maintenance challenges. Daly explains how many are realizing that a more strategic approach is needed to reap the rewards of data accuracy, enrichment and storage in the longer term.

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