Lack of Esma clarity delays progress on FX trade reporting

Questions raised by Isda concerning trade reporting workflows have not yet been answered, delaying preparations for the start of mandatory trade reporting early next year

A lack of clarity from the European Securities and Markets Authority (Esma) on trade reporting requirements in Europe is making it difficult to find a workable mechanism to report foreign exchange trades after Esma's recent rejection of a proposal put forward by the industry, according to banks and industry associations.

At the heart of the problem is the need for trades to be reported by both counterparties to a trade, as required from early next year under the European Market Infrastructure