Case Study: Why a leading global investment management firm chose UnaVista to centralise their multiple regulatory reporting obligations
In 2017, they switched their EMIR reporting to UnaVista based on the good experience they had for MiFID. The switch to UnaVista provided the firm with an enriched user interface that is easy to navigate and intuitive.
This leading global investment management firm operates in 30 countries with over 120 investment teams. With a significant proportion of its operations in Europe, this firm is required to fulfil global regulatory reporting obligations including the European Market Infrastructure Regulation (EMIR), Markets in Financial Instruments Regulation (MiFIR) and other global jurisdictional regulatory reporting regimes.
Investment firms are required to fulfil multiple global financial regulations leading to complex operational and technical challenges. Operating from multiple geographical locations and engaging with counterparties of equal complexity, can make regulatory compliance daunting. This often leads to fragmentation in reporting information and processes, increased technology costs and inconsistency in business insight.
To combat this fragmentation and reduce operational and regulatory risks, this firm opted to use UnaVista regulatory reporting platform to help:
Manage the significant increase in volume of transactions with the onset of MiFID II transaction reporting
Provide advanced functionality including enriched user interface, advanced management reporting dashboards and advanced filtering
Simplify reporting processes including normalising, validating and enriching data before routing to the appropriate regulator
Improve visibility and control of transaction reporting information
With the introduction of MiFID to increase transparency in financial markets within the EEA, in 2008 this firm selected UnaVista as the Approved Reporting Mechanism (ARM) of choice. To assist with the collection and normalisation of data from the firm’s vast number of internal systems, they used UnaVista’s Rules Engine. This allowed them to create one golden source which they could enrich and report from.
With the onset of further regulation, the volume and complexity of transactions would increase significantly therefore, the firm required a strategic solution that would ensure increased visibility and governance of their global reporting processes.
Although this firm had initially used another vendor for their EMIR reporting, they were not getting enough visibility or control over their reporting. In 2017, they switched their EMIR reporting to UnaVista based on the good experience they had for MiFID. The switch to UnaVista provided the firm with an enriched user interface that is easy to navigate and intuitive. The management information dashboard enables the firm to easily visualise their transaction reporting information and proactively monitor for potential anomalies while the advanced filtering capability of the platform enables their users to view information that is relevant to their job function.
The firm worked very closely with UnaVista on the transition project with leadership from a dedicated professional services consultant from UnaVista as a single point of contact to manage the onboarding project.
The potential challenge with switching trade repositories for the firm was maintaining the matching and pairing rates of their trades with their brokers who did not use the same trade repository for their EMIR reporting. However, with effective collaboration, the firm maintained a consistently high matching rate after moving their EMIR reporting to UnaVista’s platform. The project involved completely mapping the firm’s existing source data to UnaVista’s format and storing this data logically as per the regulator’s request. The efficiency and responsiveness of both project teams also led to a smooth and expedited transition from the previous trade repository.
With the introduction of MiFIR, this global investment management firm took the natural next step of extending the relationship with UnaVista in 2017 as their ARM of choice to fulfil their transaction reporting obligations across all asset classes.
They worked closely with UnaVista to automate and handle the increased volume and complexity under MiFIR. To further enhance their reporting, this firm selected the eligibility reference data service to help avoid instances of over and under reporting.
Aside from the European regulatory regimes the firm scaled up their use of UnaVista’s platform to include FinfraG Swiss reporting through UnaVista to SIX. They are currently looking to expand this to other G20 regimes in the future.
With changes to existing regulations and introduction of altogether new regulations, global financial services firms continue to seek sophisticated solutions that do more than just reporting. Firms can gain invaluable insight into their business and processes by using the transactional data that they report through UnaVista’s platform.
Like many investment firms, the plethora of global regulations has prompted many leading investment firms to harmonise their reporting regimes through a central regulatory hub to enable firms focus on increasing their revenue with the peace of mind that their regulatory reporting obligations will be fulfilled. In addition, having one solution that can fulfil multiple reporting regimes reduces the need for, and cost of IT infrastructure.