FIA suggests alternative solutions which will assist regulators to monitor systemic risks in the ETD market.
The Futures Industry Association (FIA) recently published a new position paper that highlights the concerns of market participants with the current reporting framework for exchange traded derivatives (ETDs). Further, and more importantly, FIA suggests alternative solutions which will assist regulators to monitor systemic risks in the ETD market, improve data quality and reduce existing inconsistencies with European Market Infrastructure Regulation (EMIR) reporting obligations.
“Trade reporting is extremely important and needed, and it is one of the more significant changes that came out of the G20 Pittsburgh accords for the monitoring of systemic risks,” said FIA President and CEO Walt Lukken. “Today we are making several recommendations to help regulators get the information to monitor risks in a way that is efficient for market participants.”
This paper has been prepared to assist ongoing discussions about the efficiency of regulatory reporting in the EU and the possible streamlining of reporting obligations in the derivatives markets. The paper briefly summarizes the material issues and potential solutions, with a view to generating further debate and discussion with, and within, the legislative and regulatory communities. FIA makes the following recommendations:
FIA encourages policymakers to acknowledge the recommendations set out within this paper and support the modifications of the EMIR Reporting regime for ETDs, which remains under review, as envisaged in the recently published text of EMIR Refit. FIA stands ready to assist policy makers and legislators as required.
