EMIR Refit: Duco announces solution for upcoming data quality and reporting requirements

Software-as-a-Service, no-code platform provides firms with the agility they need to ensure the accuracy, completeness and timeliness of trade reporting data and adapt quickly as regulatory requirements change

21 February 2023, London, UK – Duco, a leading cloud-based data automation company, today announced the rollout of its no-code solution to help firms meet data quality requirements of the upcoming EMIR Refit.

The EMIR Refit will make sweeping changes to the data and reconciliation requirements for firms reporting derivatives trades to Trade Repositories (TRs). To meet these requirements, firms will need to remap their existing data processes, adapt to new data types and ensure they can rapidly detect reporting errors. For example:

• There are 89 new reportable fields, while 15 have been removed and others have seen changes to their names, formats or definitions
• Firms will have just seven days to spot and notify the trade repository of any reporting errors
• Additionally, there’s the potential for increased regulatory divergence in the UK due to Brexit as the Financial Conduct Authority (FCA) and the Bank of England develop their framework
• ESMA guidelines set out specific requirements for ensuring the accuracy of reports, increasing the importance of reconciling the data sent to regulators and TRs to identify any data quality issues

These changes are part of phase I of the EMIR Refit, which goes into effect on 29 April 2024. Phase II, which follows two years after, will include even more reconcilable fields.

Firms using legacy reconciliation systems will struggle to adapt to the current – and future – changes. These systems struggle with the complexity of derivatives data, are hard-coded to a particular format and require extensive IT support to make changes.

Business users can leverage Duco’s no-code reconciliation tool to rapidly remap existing processes or build new ones without technical knowledge. Duco’s self-service cloud solution offers firms a wide range of data integrity capabilities: from controlling upstream intersystem data to ensuring downstream data integrity. Duco helps firms reconcile sent and received data with the TRs and regulators post reporting, to ensure accurate reporting and avoid errors and fines.

James Maxfield, Head of Product and Solutions, Duco, said: “The EMIR Refit is just the latest in a long list of regulatory changes for firms. As the scrutiny over data quality increases, it’s vital that firms have technology that enables them to put robust controls in place to ensure the accuracy and completeness of their data, yet retain the agility necessary to respond fast to inevitable changes. Duco customers are already able to cover a wide variety of transaction reporting use cases and our significant investment in our transaction and trade reporting solutions will only strengthen the ability to ensure accurate, complete reporting data.”