Abstract

This presentation will delve into the practical implications of dual-sided reporting within the context of two reporting frameworks: the European Market Infrastructure Regulation (EMIR) and the Money Market Statistical Reporting (MMSR). It will provide insights into how dual-sided reporting contributes to improving the accuracy, consistency, and reliability of financial micro-data.
The analysis will focus on the behaviour of matching metrics in EMIR data, the prevalence and patterns of mismatches, and the attributes or product features most prone to reconciliation challenges. It will identify areas where dual-sided reporting is essential for obtaining an accurate view of derivative markets, such as instances where less sophisticated entities produce higher-quality data. Simultaneously, it will assess whether there are areas where reporting consistency is already satisfactory, and highlighting scenarios where alternative approaches to dual-sided reporting may suffice.
The presentation will also delve into the role of reporting delegation, exploring its impact on data quality. Furthermore, it will examine how the use of standardized reference data can reduce the reporting burden on market participants while improving the overall consistency and reliability of submitted data.
The analysis will be complemented by selected examples from MMSR pairing and matching regular exercise.
Through this analysis, we will attempt to demonstrate how dual-sided reporting serves as a valuable tool for ensuring the integrity of financial micro-data, while also contributing to ongoing discussions on the future of regulatory reporting frameworks in Europe.