The complexity and diversity of international regulatory reporting regimes such as MiFID, MiFIR, EMIR, Dodd Frank, ASIC, MAS continue to increase. What was previously a Bank or Venue requirement has spread to the Buy Side and across other market participants. Inclusion of new asset classes, new timing and richness standards for reporting, and lower exception thresholds for fines create a regulatory tail risk for organizations that influences strategy, financial and other business decisions.
As new regulations are introduced, organizations are trying to maintain compliance by:
- Investing extensive financial resources
- Retrofitting systems and data practices for compliance
- Building large internal organizations to accommodate these changes
- Meanwhile, this "tax" yields little in terms of new services or value for customers and shareholders – except for hopefully the avoidance or minimization of fines.