Liquidity provider agreements and trade reporting – things to take into account

Collaboration with your liquidity providers and other counterparties is key to ensuring your regulatory transaction reporting is accurate.

The implementation of EU EMIR Refit, UK EMIR Refit and the ASIC and MAS Rewrites means that there are a number of extra items relating to transaction reporting which should now be taken into account when putting together agreements with liquidity providers.

See below examples of issues which should be at the forefront:

UTI reporting / generation / sharing

It is important to understand the UTI waterfall that applies and who the generating entity is. The process of UTI generation should be dealt with in your derivative trading documentation or in separate bilateral agreements.