Hong Kong (HKMA) Derivatives Reporting Solution

Hong Kong (HKMA) Derivatives Reporting Solution

Summary of the regulation

 Entering into effect in July 2015, the Hong Kong Monetary Authority’s (HKMA) transaction reporting regime for OTC derivatives at first initially only captured subsection of asset classes. Known as phase 1 reporting, the asset classes encapsulated were only interest rate swaps, and non-deliverable FX forwards.

Phase 2 reporting, applying from 1st July 2017, expands this to all rates and FX derivatives, as well as adding equity, commodity, and credit derivatives (all of these comprising over-the-counter derivatives).

Reporting for the Hong Kong regime differs to transaction reporting in other jurisdictions in that while other jurisdictions typically have a range of regulated, privately trade repositories, for Hong Kong there is only one; the HKMA TR. Firms with a reporting obligation have the option of becoming a direct member of the HKMA TR, or reporting via a “submitting agent”. As an entity already regulated extensively in Europe and beyond, UnaVista chose to partner with the DTCC, one of two approved submitting agents to the HKMA TR.

Using the UnaVista G20 Reporting solution, firms are able to meet their regulatory reporting requirements using a single, efficient template for all asset classes, with data and report synergies across a number of jurisdictions including HKMA. The HKMA reporting requirements themselves are dual-sided – if either trade counterparty has a reporting requirement, they are obliged to submit a transaction report for that trade. For more information on the firms in scope of the reporting requirement, please refer to the UnaVista HKMA Reporting regulation page.

How UnaVista can help you with MAS Reporting

The UnaVista G20 Reporting solution – one single interface for your global derivatives reporting requirements

Firms with reporting obligations in multiple jurisdictions including under MAS can use the UnaVista G20 Reporting solution to fulfil their reporting obligations under these multiple jurisdictions efficiently, using a single format for reporting.

UnaVista has partnered with the DTCC GTR, who maintain an MAS-licensed trade repository, to submit transaction reports in the requisite format. The UnaVista G20 Reporting solution can be used to route to the DTCC MAS trade repository, performing all the requisite transformations and mappings in the process.

The UnaVista G20 Reporting solution offers users the following possibilities:

  • Save resources when conforming to multiple different data requirements. UnaVista offers a reporting format with no more than 150 fields for all asset classes across all reporting jurisdictions.
  • Streamline your operational processes, with the reporting infrastructure for multiple jurisdictions accessible via one interface.
  • Maintain a single gateway with UnaVista, for onwards routing to trade/data repositories worldwide.

The UnaVista G20 Reporting solution can be today used for reporting under ASIC, EMIR, MAS, the Bank of Israel, FinfraG and other reporting jurisdictions. A highly configurable software solution, it can be deployed alongside our suite of Rules Engine software capabilities to reformat, enrich, and transform data as required should firms require assistance transforming the data into the required format for the destination.

UnaVista G20 Reporting Data Flows


Benefit from our regulatory reporting experience

As a highly regulated entity itself, the London Stock Exchange Group already undertakes regulatory reporting on its own behalf. On top of this, we also operate the UK’s largest MiFID ARM, and an award-winning EMIR trade repository. We bring this regulatory expertise to bear in our excellent reputation for compliance, security, and thorough analysis of reporting requirements, resulting in reliable, efficient products and services.

Our products don’t just meet regulatory requirements – they exceed them, reducing the risk of incorrect, late or duplicate reporting.

Save the cost of middleware

You can submit reports in any structured format, UnaVista’s advanced technology then ingests the data, displays that data in a unified way for manipulation and then disseminates that information to regulators or counterparties in the desired format. This reduces the need for expensive middleware.

Have a system with smart validation

UnaVista 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 where appropriate. UnaVista offers a whole suite of exception management tools to manage records that have failed validation.

Improve your operational processes

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 at a later date.

Reconciliations - 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 thus enabling firms reduce regulatory and operational risk.

Know what’s happening in your business at all times

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 or by a problem of which you were unaware.

Get the management information you need

You can use UnaVista to monitor trends within your 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 customisable dashboards.

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