SFTR day one data quality will not be perfect, expert says
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SFTR day one data quality will not be perfect, expert says 10 May 2019London Reporter: Maddie Saghir
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On day one of the 网爆吃瓜 Financing Transactions Regulation (SFTR) reporting, firms will not have perfect data quality and should assume the worst about transaction reporting, according to REGIS-TR鈥檚 Jo Hide.
Hide, speaking at IHS Markit鈥檚 SFTR event in London, said: 鈥淎 lot of people that I speak to have a lot of high expectations around the quality of their data can achieve early on.鈥�
鈥淔rankly that won't happen day one, week one, month one or maybe even year one because it is a long process. The date of 11 April isn't the end it is the beginning of when things will really start happening.鈥�
What regulators are looking for comes in waves, Hide suggested that it depends on how well things are going. She said: 鈥淭hey know what they expect to see and they will be getting data from us from day one.鈥�
Hide explained: 鈥淚f the regulators don鈥檛 see what they expect to see then they will call you. Firms that weren't reporting for the European Market Infrastructure Regulation got a call within the first couple of weeks.鈥�
She noted that firms should assume the worst about transaction reporting because 鈥渋f you don鈥檛 then it is probably going to cost you a lot of money in investigative fees鈥�.
鈥淚t is worth having a negative feeling about it because you cannot assume it鈥檚 all alright. You will be expected to look every three months to take a section of your data and confirm that it is right.鈥�
According to Hide, it is better to have a plan on day one because the regulator will be asking what that plan is, what the problems are and the timescale for correcting them.
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