Trade repositories could be fined and have their licenses revoked by European regulators.
Industry groups in Europe have voiced their opposition to plans for the so-called systemic internalizer, or SI, regime to be adapted and applied to the trading of over-the-counter derivatives.
A coalition of industry groups, including the Association for Financial Markets in Europe and the International Swaps and Derivatives Association, has expressed concerns about a single reporting regime for both transaction and position reporting on over-the-counter derivatives based on reporting through trade repositories.
Compliance officers at firms operating in the U.K. must delve deeper into the background of clients and companies they deal with to avoid falling foul of tough U.K. rules on financial sanctions, attorneys said.