Insights | Hatstand Green Papers
EMIR: Changes in Reporting to Transaction RepositoriesView info or download PDF
This paper outlines and discusses changes in reporting to transaction repositories. Changes are due to feedback after a year of reporting to repositories and to rules on margins introduced after reporting to repositories became effective in February 2014.
MiFID II/MiFIR ReportingView info or download PDF
This paper is an overview of all reporting functions included in the MiFID review (except Commodities position reporting). It is a high-level overview that highlights the main challenges associated with each report. It aims to provide basic information to professionals that are involved in the implementation of regulatory reporting in the fields of operations, compliance and technology.
Snapshot: The LEI RevolutionView info or download PDF
Regulations that will become effective in the EU/EEA during next 24 months will make an more extensive use of the LEI (e.g. (MiFID II/MiFIR, changes to EMIR reporting to repositories, SFTR, etc.). This paper is a high-level overview of the nature of the changes and provides an example of new LEI-based fields in forthcoming regulatory reporting. It will be of high interest to those working in Data Management within both buy- and sell-side institutions.
The MiFID Review: Changes in Best ExecutionView info or download PDF
For part 3 of our MiFID Review series we examine the changes in best execution. MiFID II/MiFIR do not just extend best execution to non-equity instruments; they have metrics to assess the quality of execution and new reporting requirements that will outline the ‘quality of execution’. Early views on the process of admission to trading of non-equity instruments are also discussed in this document.
Snapshot: Extraterritorial Reach of the MiFID II ReviewView info or download PDF
This paper provides a high level overview of the impact of MiFID II/MiFIR on exchanges, financial institutions and clients based outside the EU/EEA area when dealing across the border with entities based in the area. It takes a look at what is required by the rules and what can be considered ‘courtesy compliance’.
Global Connectivity ReviewView info or download PDF
Given the over complexity of most investment banks’ connectivity infrastructure, it is important to start small . Days of generous Information and Communication Technology (ICT) budgets are a very distant memory for any investment bank. Download this Green Paper to find out more about addressing whether the priority is cost saving, compliance or agility. There is huge opportunity for investment banks to review the state of their global connectivity environments.
May The Data Be With YouView info or download PDF
In today’s environment, the regulatory pressures of complying with the data-related directives of Basel III, Dodd Frank and MiFID II, which focus on data quality, accuracy, governance and accessibility, are monumental. Download this snapshot to find out more about the key attributes that you need to consider to build an effective, full-scale data management programme for financial services firms.
Snapshot: CybersecurityView info or download PDF
Are you in control of your cyber risk? Cybersecurity has become a major concern for many financial institutions. In the US, FINRA and the SEC have made Cybersecurity a top priority for the 2015 examinations of their members’ books and records. Affecting clients, data, networks, hardware, software and operations, businesses need to have sound governance practices in place to understand that Cybersecurity is more than just an IT issue.
Snapshot: Dark Trading Post-MiFID IIView info or download PDF
This paper looks at how the business of an institution operating a dark pool trading platform will have to change when MiFID II/MiFIR comes into force in Q1 2017. After this date, the only way to execute a ‘dark’ transaction will be by using one of two pre-trade transparency waivers: a ‘Large in Scale’ exemption or a ‘Negotiated Transaction’.
Snapshot: Unbundling Demystified. Research Post-MiFID IIView info or download PDF
MiFID II/MiFIR states that the cost of financial research work should be transparent and separate from any other charges. This snapshot provides a high-level overview of the practicalities behind unbundling the cost of research from other charges and putting together a small system that manages the provision of financial research. It is a necessary read for those who manage the provision of research work in a buy side company.
Electronic Trading in Fixed Income: Evolution not RevolutionView info or download PDF
Electronic trading platforms do not increase liquidity; they facilitate trading and liquidity discovery. The key to any successful trading strategy is to understand how to best leverage these electronic trading tools, along with your traditional voice trading, to come up with a seamless workflow that allows you to automate the lower risk, higher volume trading and focus your attention on the higher risk/higher margin business. This is relevant to all traders and sales staff on both the buy and sell side.
Addressing Technology Debt in the Wake of RegulationView info or download PDF
Is everything still fit for business? Recent years have seen unprecedented changes to the technical infrastructure of financial institutions. With falling revenues, fewer clients and changes in market behaviours, those banks who have regularly reviewed their business strategy, with mindful consideration of their accumulated technology debt, will be ahead of the competition once the regulatory dust settles.
Snapshot: Comprehensive Capital Analysis and Review (CCAR)View info or download PDF
Comprehensive Capital Analysis and Review (CCAR) was established by the Federal Reserve in 2011 and is an annual assessment of the capital adequacy of large complex Bank Holding Companies (BHCs) operating in the U.S. It tests for whether there is sufficient capital to cover operations in times of economic and financial stress and whether a robust, forward-looking, capital-planning process is in place. This snapshot provides a high-level description of the impact of CCAR for American Financial Institutions and it is directly relevant to G-sibs and D-sibs who operate in the United States.
Organised Trading Facilities: A Cost-Benefit FrameworkView info or download PDF
This paper describes a high-level framework for a cost-benefit analysis of registering as an Organised Trading Facility (OTF). When MiFID II/MiFIR become effective, financial institutions that operate a non-equity trading platform will have to register as an OTF or change their business model.
Snapshot: Enhanced Prudential Standards (EPS)View info or download PDF
This document provides a snapshot on Enhanced Prudential Standards (EPS). It contains an overview of the standards, key dates and milestones, an impact assessment and high-level tasks that need to be considered to implement EPS.
A Guide to IT Risk and ControlView info or download PDF
Technology is key to business development and the growth of new applications to assist people with everyday tasks is booming. This demand and experimentation requires updated IT governance and control measures to manage risk. This document provides a guide to IT Risk and Control practices that enable regulatory compliance and control of technology risk.
Cross Border and Extraterritorial Implications for the Buy-SideView info or download PDF
This paper discusses the extraterritorial reach of European and US regulators and key features of cross-border trading. It gives a background to cross-border and extraterritorial rules, motivations behind their introduction and regulatory requirements arising from the US, EU and other regulatory regimes.
BCBS 239: Effective risk data aggregation and risk reportingView info or download PDF
This green paper outlines the key principles of BCBS 239, published by the Basel Committee at the Bank for International Settlement in 2013. Find out what you should do to meet these principles with the aim of improving risk aggregation and risk monitoring.
A Hatstand Survey: Clean Databases - Reality or Fantasy?View info or download PDF
In the financial industry, are clean databases a reality or simply fantasy? To find out, Hatstand commissioned an exclusive survey to benchmark the level of complexity of data structures. We surveyed over 1000 technology and business executives to assess how complex their databases are and their level of readiness to face forthcoming changes. Download now to discover our findings.
Monetary Authority of Singapore Guidelines on Technology RiskView info or download PDF
Technology risk is becoming a much discussed topic in many jurisdictions. Although this paper looks at the Singapore Monetary Authority for technology risk management, it is also interesting to people from other jurisdictions as it debates common principles.
The MiFID Review: Changes to Trading EnvironmentsView info or download PDF
MiFID II/MiFIR will change the way financial instruments are traded. This is the first of three papers that look into how trading of financial instruments will change. MiFID II/MiFIR do not just extend best execution to non-equity instruments; they introduce obligations to trade on exchange, new rules on negotiated trade, a new trading venue and some changes in the details of the venues already defined by MiFID I.
Regulatory Trade Reporting: A Buy-Side PerspectiveView info or download PDF
This paper describes some of the specific requirements raised by new regulatory trade reporting regimes, particularly those which require action to be taken by buy-side institutions.
Market Model Typology: A data model for the consolidated tapeView info or download PDF
A data management paper on the Market Model Typology (MMT). This paper discusses the origins of the MMT; a data model which categorises trades across securities, exchanges, MTFs and OTC reporting venues, and talks about the model's path to implementation.
CRD IV/CRR Countercyclical buffer Identifying the geographical location of exposuresView info or download PDF
This paper describes how to determine the ‘locality’ of a portfolio.
EMIR: Timeline and Foundation for an Action PlanView info or download PDF
This work is somewhat different from the rest of our publications. This time we discuss our understanding of the timelines and what we can do given what we know and the deadlines we know we have to meet. This is the third update following the publication of the revised timeline published by ESMA on 13th September 2013.
EMIR Clearing Obligations by Asset ClassView info or download PDF
This is an analysis of the content of the ESMA's paper on Clearing Obligations. This is the beginning of a process to define regulatory technical standards for each asset class and a starting point for discussing the basic principles behind the definition of criteria that will lead to the clearing obligation definitions. This analysis also outlines the principles that ESMA is trying to identify to establish how clearing will work for each asset class.
LEI - Legal Entity Identifier Version 4View info or download PDF
This paper has been updated to include a list of institutions that will issue pre-LEIs until the infrastructure is completely operational.
MiFID II/MiFIR Trading Venues and Best ExecutionView info or download PDF
This paper gives a high level description of some of the main changes brought about by the MiFID review. The splitting of the rules between directives (MiFID II) and regulations (MiFIR) are discussed, as well as some of the consequences of introducing best execution to non-equity.
EMIR: Issues with the definition of OTCView info or download PDF
This short paper follows the publication of ESMA's Q&A on EMIR. It specifically deals with issues around the definition of OTC derivative contracts, plus the instruments that fall within the scope of EMIR obligations and why.
Some facts about FATCAView info or download PDF
So many articles about FATCA have been published and the basic facts went missing without clarifying any of the issues around FATCA. For this reason, we decided to publish this paper to provide clarification on a few key points.
EMIR - Trade Repositories and other reporting requirementsView info or download PDF
This paper provides the latest updates on the LEI and the technical standards that will enter into force on 15th March 2013.
EMIR: OTC ClearingView info or download PDF
The European Parliament approved level 1 of EMIR on 4th July 2012. ESMA published the final text of the Regulatory Technical Standards and Implementation Technical Standards on 27th September 2012. EMIR regulates post-trade processes for OTC derivatives. The actual trading and pre-trading processes will be the remit of the revision of MiFID.