GoldenSource is to introduce Brexit-specific data sets to its data management platform to enable financial institutions to prepare for differing regulatory reporting demands in the event of a no-deal Brexit.
The platform will actively manage Brexit-specific data from market data vendors to ensure that financial institutions report their trades to both European Securities and Markets Authority (ESMA) and the Financial Conduct Authority (FCA).
Enhancements to the platform come in response to the possibility of the UK leaving the EU without a deal on 29 March.
GoldenSource said: “If a political agreement isn’t struck, no new UK-related trade or transaction data would be received or processed by ESMA, while the FCA would have to stop sending data to ESMA.”
It added: “In the short-term, the platform will focus predominantly on supporting financial institutions with data segregation—making data for UK and EU available to send to the FCA and ESMA respectively.”
“In the long-term, as the regulatory reporting requirements of the two regulators begin to diverge, the platform will allow banks to go into their UK dataset and make changes without affecting their European reporting commitments.”
If the FCA was to issue new rules and thresholds, or tweak existing ones, financial institutions with branches in multiple jurisdictions could immediately comply with any new requirements.
Commenting on the new specific data sets, Volker Lainer, vice president of product management and regulatory affairs at GoldenSource, said: “It’s no secret that the FCA and ESMA have contrasting outlooks when it comes to regulating financial markets.”
He added: “In the event of a no-deal or even a soft Brexit, regulatory reporting requirements will start to diverge, so firms need to get to grips with precisely what needs to be reported on to whom, and when.”
“Only through a centralised data management platform can financial institutions ensure they’re not just avoiding both non-compliance and costly over-reporting after the initial grace period, but also prepare themselves for any future regulatory changes across other third-countries.”
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