Regulatory reporting is changing. Are you ready?

If you see regulatory reporting as “just a compliance exercise”, you’re missing an opportunity to improve operational transparency and forecasting efficiency.

As scrutiny from regulatory bodies in the financial services and banking industry increases, you need to be ready to make changes at a moment’s notice. With efficient, cost-effective data management processes and tools, you can adapt to changes in regulatory frameworks and enhance business agility — turning compliance into a strategic advantage.

We take a look at recent and upcoming developments and their implications for organizations across industries and regions.

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Major reporting developments

One significant development is the Digital Regulatory Reporting initiative launched by the International Swaps and Derivatives Association (ISDA). The ISDA DDR aims to reduce the time, resources and cost involved in implementing reporting regulations across jurisdictions.

Covering a range of regulations, the ISDA DDR helps organizations address cross-border inconsistencies by using the open-source Common Domain Model. It keeps everyone on the same page when it comes to interpreting the rules, making reporting more streamlined and consistent.

Another big change is reducing settlement cycles, the timeframes for settling financial transactions once a trade is executed. Many countries are moving toward T+1 (next business day) and T0 (same day) cycles, which means transactions need to be processed and reported much faster — a change that will require more cohesive and well-integrated processes.

Overview of the 2024 regulatory calendar

The regulatory calendar for 2024 was packed with other changes that affect how organizations report their financial transactions. These include:

1. Unique transaction identifiers (UTIs): Each financial transaction needs a UTI, making it easier to track and report on transactions throughout the trade lifecycle.
2. Unique product identifiers (UPIs): These standardized codes identify over-the-counter derivative products to avoid confusion about what is being reported.
3. Critical data elements (CDEs): These data fields provide in-depth detail about transactions. Changes include new formats and allowable values for data fields, making the data more consistent and reliable.
4. The ISO 20022 XML message standard: This standard brings consistency to the reporting template to facilitate efficiency, transparency and automation in cross-border transactions.
5. Reporting scope: The standardized reporting of uncleared bilateral transactions increases transparency and reduces the risk of noncompliance.
6. Additional reporting fields and validation rules: These are further measures to bolster transparency and keep data captured and validated.

While the progress toward reporting harmonization is remarkable, it also presents challenges for organizations. Staying ahead of the curve means keeping a close eye on the latest solutions and technologies that can facilitate these revisions.

What’s coming up in 2025–26

Here’s an overview of significant regulatory changes coming up in 2025–26:

1. Canadian Securities Administrators Rewrite: An initiative aimed at updating Canada’s derivatives reporting rules to align with global standards. It is expected to go live on 25 July 2025.
2. Hong Kong Monetary Authority Rewrite: This will include UTIs, UPIs, ISO 20022 and mandated reporting of CDE The authority will also maintain a list of designated jurisdictions for masking relief (allowing an entity with a reporting requirement to mask or conceal certain data). It is set to go live on 29 September 2025.
3. Markets in Financial Instruments Directive (MiFID) III: This directive will include UPIs and field updates to match cross-jurisdictional requirements. The details are still to be published, but the estimated go-live date is in mid-2026.
4. Securities and Exchange Commission (SEC) Rule 10c-1a reporting: This new reporting requirement will cover securities lending transactions, similar to a streamlined version of the Securities Financing Transactions Regulation. It is expected to launch on 2 April 2026.

In addition, an alignment of global compliance reporting frameworks is offering organizations the chance to assess their operational models and controls.

For example, CSV submissions are being replaced with ISOXML submissions (a set of XML standards developed by the International Organization for Standardization to facilitate the structured exchange and processing of financial data). Also expect UTI enrichments, UPI validations and essential field validations across all regulatory reports.

How NTT DATA can help

It’s clear that regulatory reporting is not a straightforward task. The key is having a well-integrated platform and services that facilitate compliance and precision while optimizing your financial processes.

NTT DATA’s regulatory reporting team has over 15 years of experience in handling various regulatory reports, and we are constantly monitoring upcoming regulatory changes.

We work globally, and our portfolio of expert solutions, including IT and compliance, data management and system integration, is second to none.

Our services include:

• Regulatory supervision: Impact assessment and preparation, helping you understand financial products and regulatory reporting requirements
• Data management: Data mapping, enrichment and internal validation (to ensure that your reports are accurate before they are submitted), as well as data privacy and security
• Platform integration: Integration of our platform with multiple source systems and input file formats
• Reporting: Reports in the ISO 20022 XML format, covering all stages of the transaction lifecycle; managing reporting needs during organizational restructuring, corporate actions, and mergers and acquisitions; and support for UTI pairing
• Exception handling: Fixing issues and replaying submissions to meet your reporting deadlines, with ongoing support to keep your platform running smoothly
• Operational resilience: An intuitive dashboard that lets you monitor your reporting processes in real time, along with comprehensive risk management and reconciliation services

Let’s collaborate

Timely and accurate compliance with all regulations helps you avoid penalties and legal issues, facilitates strategic analysis and supports informed decision-making.

This can be daunting, but you don’t have to do it alone. At NTT DATA, we’re committed to helping you transform your reporting strategies in a way that builds enterprise responsiveness.

Whether you need help with impact assessment, data management, platform integration or any other aspect of regulatory reporting, we are here to support you every step of the way.

Let’s collaborate to keep your organization fully compliant and ready for whatever the future holds.

This article includes contributions by Surya Prakash Bapatla, Industry Consulting Senior Consultant at NTT DATA, Tabassum Siddique, Industry Consulting Manager at NTT DATA, and Rahul Malhotra, Vice President: Consulting — Banking, Financial Services and Insurance at NTT DATA.