Bank of Israel Reporting Solution
Summary of the regulation
On the 2nd June 2016, the Bank of Israel issued a regulatory order requiring firms to report their FX transactions and rates derivatives trades involving Israeli Shekel to the Bank of Israel from the 1st January 2017 onwards.
This is actually the second transaction reporting regime implemented by the Bank of Israel. The first began in 2011, and required upload of a limited number of data fields to a secure website in a zipped file. The 2016 regime is much wider in scope, encompassing a larger range of instruments and reporting firms.
Although the data required is somewhat based on that required for EMIR reporting, there are a number of differences between the two jurisdictions, including the fact that FX spot is reportable under the 2016 regulatory order. Transactions need to be reported on a daily basis, alongside a monthly report of all transactions executed during that month, all outstanding transactions, and their valuations.
Another key difference is that firms are required to upload reporting files in XML format via a third-party protocol to the Bank of Israel’s servers, supplied by a vendor named CyberArk. Unavista performs this file format transformation as standard, and provide full connectivity to Bank of Israel servers, such that purchasing licenses and CyberArk software is not necessary for UnaVista clients.
The reporting obligation is dual-sided, and all firms above a certain gross notional threshold of reportable instruments are required to report. The threshold itself is USD15m in average daily aggregate gross notional – if you execute transactions (irrespective of whether in a principal or agent capacity) at a rate above USD15m, you will have a reporting obligation. For more information on the reporting obligation, instruments covered, and reporting workflows, please refer to the UnaVista Bank of Israel Reporting regulation page.
How UnaVista can help you with Bank of Israel Reporting
The UnaVista G20 Reporting solution – one single interface for your global derivatives reporting requirements
Firms with reporting obligations in multiple jurisdictions including Bank of Israel can use the UnaVista G20 Reporting solution to fulfil their reporting obligations under these multiple jurisdictions efficiently, using a single format for reporting.
The Bank of Israel Reporting module of the UnaVista G20 Reporting solution not only provides full connectivity to the Bank of Israel’s servers without the need to install CyberArk software; it also provides a number of services around monthly reporting, to ensure minimal operational resources are required to remain compliant.
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 FinfraG, EMIR, MAS, the Bank of Israel, ASIC 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.