New research from ACA Group reveals that most firms are struggling with their transaction reporting obligations under the EU’s MiFIR and EMIR requirements. With findings revealing more than 6 million transaction reporting errors across a sample of 30 review projects, averaging 200,000 errors per review, regulators are not receiving the data they need to successfully identify market abuse and systemic risk.
The new findings build upon previous research from ACA Group, a governance, risk and compliance (GRC) adviser in financial services, which found that 97 percent of reports under MiFIR/EMIR contained inaccuracies in 2021.
There’s also evidence to suggest that firms either remain naïve around their reporting obligations, have misplaced confidence the quality of their reporting or simply don’t know that they’re in breach. An ACA Group-submitted Freedom of Information (FOI) request revealed that the number of errors and omissions forms submitted by firms, documents in which firms admit reporting mistakes to the regulator, was on average just three per year. Meanwhile, a worrying 87 percent of firms say they are confident in the quality of their reports.
“We’ve been warning firms for some time that transaction reporting needs close and ongoing monitoring,” Matt Chapman, managing director and…
