Hong Kong Derivatives Reporting

The Securities and Futures Commission in Hong Kong, have been responsible for interpreting the G20's requirements for its members to implement a derivatives reporting regime. The SFC have stipulated that only OTC (and not ETD) transactions need to be reported, but that both sides of the transaction must report to the trade repository.

How Hong Kong Derivatives Reporting will work

The SFC will be enforcing the mandatory reporting of OTC derivative transactions to a sole trade repository, which will be run by the Hong Kong Monetary Authority (HKMA).

In order to report, the reporting entity must first apply to join the HKTR as a TR Member. The TR Member can then report to the HKTR only via an approved Nominated Agent, whom they must select using a Agent Nomination Form. The TR Member must also specify the scope of the information that they will be submitting to the HKTR.

The scope for Hong Kong Reporting is much larger than that of the EU's EMIR regime where there are 85 fields, HKMA have over 300 field split across the asset classes, with separate templates per classification.

The reporting regime is expected to start in Q2 2015.

How UnaVista can help you

UnaVista is applying to be a Nominated Agent

This means if approved, firms will be able to report all of their relevant OTC Derivatives Transactions to UnaVista, we will then send them to the Hong Kong Trade Repository (HKTR).

Simplify the reporting process

Hong Kong Reporting is going to be far more complex than even EMIR, due to the large number of asset specific fields. UnaVista Rules Engine can simplify this process for you by taking data from your sources and then automating the field enrichment & validation using our own LSEG data sources (LEI, BICs, SEDOLs, etc). You will get full visibility of the process and the ability to manage exceptions in the system.

Benefit from our reporting experience

London Stock Exchange has been trade & transaction reporting since its inception in 1989. Since then we have won numerous awards for our MiFID and EMIR reporting services  where we help over 5,000 clients reporting over 3.5 billions transactions a year.

Have one system for all of your transaction reports

UnaVista allows you to report on every reportable asset class, including derivatives with the new Aii code. 

Be confident you have been compliant

Regulatory authorities encourage firms to regularly review the integrity of their transaction reporting to ensure they have been successfully submitted". UnaVista assists with this process by enabling firms to reconcile between their own back-office data, the data held by UnaVista and the data held trade repository.

Have a system with smart validation

UnaVista Transaction Reporting does all the mandatory validation you would expect. But it also validates the data by checking it against the reference data sources you choose, such as ESMA’s list of regulated markets, MiFID eligible securities and the London Stock Exchange’s SEDOL Masterfile. UnaVista enables users to correct exceptions manually, export selected reports, clear non-relevant exceptions, as well as a number of other exception management tools.

Save the cost of middleware

You can submit transaction reports in any UnaVista endorsed format, which UnaVista then standardises for derivatives reporting to the specified format of the authorised trade repository. This reduces the need for expensive middleware.

Know what’s happening in your business all the time

You can receive alerts based on your custom tolerances and thresholds for things like transaction volumes or transaction size. This ensures you are never surprised late on by a problem of which you were unaware.

Improve your workflow

You can set different levels of access for individuals or groups, so people only see the information you want them to see. You can also set as many mandatory audit steps as you like. As a result, you’ll know that the right checks are in place. You’ll also have a full audit trail if you need to check back over things later on.

Get the management information you need

You can use UnaVista to monitor trends within your transaction reporting, helping you identify where errors are recurring. You can use UnaVista to take a snapshot of all your transactions at any time, choose from a variety of report templates, or create your own custom report. You can even include a variety of charts from the dashboard.

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