Deutsche Börse Group and RegTek.Solutions have partnered to deliver a certified testing and pre-validation service for clients of Deutsche Börse’s Regulatory Reporting Hub.
Available from the fourth quarter of this year, the new service addresses feedback from clients and regulators on ongoing challenges with the quality and transparency of transaction reporting under the Markets in Financial Instruments Regulation (MiFIR).
The new pre-validation platform will be available to over 2,300 executing entities, which are using Deutsche Börse’s ARM (Approved Reporting Mechanism) service. It will add enhanced testing and data quality remediation capabilities, as well as pre-submission validations, for all transactions destined for any of the 25 National Competent Authorities (NCA) to which Deutsche Börse is connected. The service is pre-configured to incorporate regulators’ expectations on data format and content in addition to Deutsche Börse’s API (application programming interface) specifications. It will support a broad range of validations including regulation-specific validations, repository acceptance criteria, messaging standards, enhanced quality validations and best practice. It will also enable firms to write and customise their own proprietary rules, avoiding a one-size-fits-all scenario.
“We are now able to offer our clients an additional service, which pre-validates their data before being sent to the Regulatory Reporting Hub. The result is a significant improvement in the quality of data we receive and submit for validation”, says Georg Gross (pictured), Head of Regulatory Services, Deutsche Börse. “The pre-validation process will allow our clients to identify any deviation from ESMA’s guidelines even earlier in the life cycle of their transactions.”
“Reporting quality is a significant challenge for clients complying with MiFIR transaction reporting. ARMs help by offering a range of regulatory, client-agnostic and market-standard validations,” says Brian Lynch, Co-Founder and CEO of RegTek.Solutions. “Our new service offers a bespoke version of Validate.Trade to Deutsche Börse clients before the oversight of regulators. This allows clients to proactively test, monitor and prove the quality of their reporting before the process is completed.”