Industry forced to rethink reporting after Esma rejects GFMA proposal

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The European Securities and Markets Authority (Esma) has rejected an industry proposal for dual trade reporting, creating a setback for foreign exchange market participants as they gear up for compliance with the European Market Infrastructure Regulation (Emir). Under Emir, both counterparties to a trade are held accountable for ensuring trades are reported, unlike the US Dodd-Frank Act, where the responsibility lies with only one side. This is causing problems for the foreign exchange market