- in South America
- with readers working within the Securities & Investment industries
TRAction’s reporting services include data validation and data enrichment to ensure errors that are identified in client submissions are resolved and that file formats meet requirements prior to submitting data to the Trade Repository (TR). There can be the odd occasion however where we receive incorrect data, which causes an error at the TR upon submission. The content of this article applies to both EU and UK SFTR.
We have identified the 4 most common errors in the transaction data we receive from our clients:
1. Incorrect Action Type used for a previously submitted report
This is the most common type of SFTR error that we receive from the TR. The exact error message looks as follows:
What goes wrong?
When TRAction first reports a new SFT, we report the Action Type as “NEWT” or “POSC”. If the transaction remains open and collateral updates are reported the next day on this transaction, the Action Type will change to “COLU”.
An error arises if the Action Type is not updated on the transaction file that the client provides when we submit an Action Type of “NEWT” or “POSC” again.
As the error message states, we cannot report this transaction as a new transaction again as this has already been done.
How is this fixed?
Whenever this issue occurs, we contact our client and ask them to update this field in the file they sent to us. Once they have provided the correct Action Type, we then amend the exceptions and resubmit them to the TR.
TRAction will also inform the client that this might occur from a duplicate trade and request a confirmation that the trades were not previously sent to us. If this is the case, then there is no action needed.
If the client provided the wrong Trade ID (and it is in fact a new transaction rather than a duplicate), then the client will have to provide the correct Trade ID so we can generate a new XML file and submit the trade to the TR.
2. Incorrectly formatted dates
TRAction often sees the date fields populated incorrectly, with the day and month sections placed the wrong way around. We get error messages from the TR in the XML handback when this happens. This is how the error message appears:
What goes wrong?
This happens when a client incorrectly formats a date field in their file, as they must be reported as ‘YYYY-MM-DD’.
Taking the above as an example, if the client populates the Termination Date of the SFT as ‘2022-12-03’ (when it should have been ‘2022-03-12), it will lead to an error because we are attempting to report it with a date that is in the future, and therefore later than the actual reporting timestamp of the trade. This of course is not possible and gets rejected.
Under certain circumstances, incorrectly populated date fields can be mistakenly accepted by the TR because the system is not able to pick up the error. For example, if a trade date of 3 January 2022 is written as 2022-03-01 and it is a date prior to the submission date, this information would be accepted by the system as 1 March 2022.
How is this fixed?
TRAction can either fix the errors for our clients or get them to amend the incorrect date and re-submit the file. We can then re-process the transaction file again once the format is corrected.
3. Incorrect timeline
We sometimes find instances where the wrong expiration date is populated and the timeline for the relevant trade is not correct. In these cases, we request the client to provide us with correct dates.
What goes wrong?
This is likely to be from manual handling of data and human error.
How is this fixed?
The client will have to review and correct the dates, providing the corrected file back to TRAction so we can resubmit the file to the TR.
What do you need to do?
In order to minimise the burden on your operations and compliance teams, and also reduce time spent on back-and-forth communication to fix errors, it is important to get the raw client data right before you submit it to your delegated reporting service provider such as TRAction.
4. Missing currency
We sometimes find instances where our clients have not provided the currency associated with one or more amount fields for a trade. When this occurs, the trade is rejected and returns an error message as the following:
The specific field referenced in the error message may vary depending on which amount field is missing its corresponding currency.
What goes wrong?
This is likely caused by incomplete data provided by the client, typically arising from manual data handling and human error.
How is this fixed?
In these cases, we request that the client provides the missing currency information or a corrected input file to TRAction so we can resubmit the file to the TR.
What do you need to do?
Take the time to review your system settings to ensure the reports are being generated correctly to improve your reporting today. We also recommend our clients check if TRAction can automatically extract the details from their platform (or have automatic reports generated and sent each day without human intervention) to minimise the errors that occur when using the ‘file submission’ method.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
