Trans-Atlantic Regulatory Storms
This month, Inside Reference Data set out to try and make sense of a dizzying array of regulation whose provisions are still a work in progress or in the process of implementation, and what these will mean for data managers.
The European Union is currently contending with how to handle financial transaction taxes. Its governing body, the European Commission, set out a proposal, and adjusted it in mid-February in an effort to reach agreement from its member nations.
Nonetheless, France and Italy have forged ahead with their own separate transaction tax plans. This means data managers have to figure out what financial instruments are affected by the different tax plans, at least until the Commission catches up. Providers such as Interactive Data and GoldenSource are addressing the complexities presented by the French and Italian plans, but the Commission’s altered tax plan actually covers more types of assets, widening the definition of which assets are “in scope” of the tax rules.
If that isn’t enough for Europeans, there’s also the European Market Infrastructure Regulation (EMIR) drafted by the European Securities and Markets Authority (Esma), which is likely to complicate legal entity identifier (LEI) proceedings by proposing the use of Bank Identifier Codes rather than the US-generated LEI pre-cursor, CICI (the CFTC Interim Compliant Identifier).
Esma’s identification standard, particularly for counterparty data, is tougher than the CICI, thus creating a likely “separate but unequal” division between US and European data sets. CFTC-registered trade repositories will have to spin-off European cousins to conduct business in Europe, if EMIR proceeds as it currently is written.
Therefore, it’s no wonder, as EDM Works’ Dennis Slattery says in “Dark Clouds for Off-Site Data”, that regulatory compliance concerns are diverting resources from operational changes that could improve reference data management in the form of cloud computing resources.
Small firms are still choosing to use cloud resources out of necessity, but it’s become clear that achieving consistency by addressing interoperability will take more time. This insight is seconded by Wipro Technologies’ Jennifer Ippoliti, who observes in her “Industry Warehouse” column that we are years away from capturing the corporate genome proposed by Thomson Reuters’ Tim Lind.
What our March issue has captured is that the visions are out there for better reference data management through better use of resources and new data management ideas. The circumstances may be an impediment now, but that will change.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
Bank-led consortium takes aim at position reporting
Five banks, including Barclays, BNP Paribas, Goldman Sachs and HSBC, have joined forces to mitigate interpretation and implementation errors in position reporting disclosures.
Verafin launches genAI copilot for fincrime investigators
Features include document summarization and improved research tools.
Waters Wrap: Open source and storm clouds on the horizon
Regulators and politicians in America and Europe are increasingly concerned about AI—and, by extension, open-source development. Anthony says there are real reasons for concern.
DSB says industry is ready to meet UPI mandate ahead of deadline
The Unique Product Identifier will be required for certain OTC derivatives in the EU at the end of April, following US adoption in January.
‘Very careful thought’: T+1 will introduce costs, complexities for ETF traders
When the US moves to T+1 at the end of May 2024, firms trading ETFs will need to automate their workflows as much as possible to avoid "settlement misalignment" and additional costs.
Court case probes open-source licenses as movement stands at crossroads
The Software Freedom Conservancy’s lawsuit against TV-maker Vizio begins trial in California, raising questions about open-source licenses and the risks posed by adhering to them.
Waters Wavelength Podcast: Countdown to T+1
DTCC’s Val Wotton joins the podcast this week to discuss the impending move to T+1 in the US.
Consolidated tape hopefuls gear up for uncertain tender process
The bond tapes in the UK and EU are on track to be authorized in 2025. Prospective bidders for the role of provider must choose where to focus their efforts in anticipation of more regulatory clarity on the tender process.
Most read
- Waters Wavelength Podcast: S&P’s CTO on AI, data, and the future of datacenters
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- DTCC urges affirmation focus ahead of T+1 move