Leveraging RegTech to Navigate Compliance in APAC  

On the 30th of September, the UK EMIR Refit officially came into force, marking the completion of the European rewrites for derivative reporting regimes. 

In a year packed with trade reporting changes initiated by the G20 to enhance transparency in global markets, the spotlight now shifts to the Asia-Pacific (APAC) region, as the final rule changes for 2024 take effect. 

Japan’s Financial Services Agency (JFSA) already implemented its changes in April, while Singapore’s Monetary Authority (MAS) and the Australian Securities and Investments Commission (ASIC) are aligned to implement their rewrites on the 21st of October. 

For financial firms overwhelmed by these ongoing changes, leveraging RegTech for regulatory reporting is becoming essential. 

The EMIR Refit, designed to simplify and streamline derivatives transparency obligations, aims to reduce the compliance burden for smaller market participants while maintaining rigorous oversight. However, navigating these rules—especially for firms operating in both the EU and post-Brexit UK—remains a significant challenge. 

At its core, the EMIR Refit seeks to boost transparency and mitigate systemic risk, but its complexity, particularly when dealing with dual compliance frameworks, can overwhelm both smaller reporting firms and larger institutions. Traditional, manual compliance methods are increasingly inadequate to meet the evolving regulatory demands. 

Compliance teams, already under pressure, now face intensified scrutiny. Firms that attempt to build in-house reporting solutions risk non-compliance due to inconsistencies and may incur additional costs by duplicating efforts. 

Adopting RegTech solutions offers a clear advantage, boosting compliance efficiency and reducing costs—an attractive proposition in today’s regulatory landscape. 

Beyond cost savings, automating compliance workflows allows firms to free up valuable resources for core functions like trading, risk management, and innovation, all of which directly impact business performance. RegTech investments today can yield long-term benefits by reducing the risk of fines, operational disruptions, and allowing firms to focus on growth and strategic competitiveness. 

However, the path to RegTech adoption is not without its challenges. A recent study by Grant Thornton found that 54% of firms prioritise cost, ease of use, and operational effectiveness when selecting RegTech solutions. 

These considerations are valid, especially in a market where many vendors lock clients into inflexible platforms, making it difficult to adapt to changing circumstances. 

REGnosys’s Rosetta platform, based on open-source standards, addresses these concerns by offering a cost-effective and fast deployment of the industry’s gold standard compliance solution. 

Rosetta is the first and only platform to fully integrate ISDA’s Digital Regulatory Reporting (DRR), an industry-led collaboration programme that mutualises the cost of interpreting and complying with global reporting rules. 

By delivering a standardised expression of the reporting rules in both human-readable and machine-executable formats, the Rosetta-powered DRR solution help firms future-proof their compliance strategies while reducing the risk of costly errors. 

This industry-leading approach is bolstered by strategic alliances. DRR is backed by industry names including BNP Paribas, JP Morgan and Goldman Sachs. In 2024, REGnosys also strengthened its collaboration with DTCC’s Global Trade Repository (GTR), the industry’s foremost provider of trade reporting services. 

This collaboration enables Rosetta users to access GTR’s testing environments, helping them stay ahead of regulatory changes. The collaboration has already facilitated successful testing for Japan’s JFSA and the EMIR Refit in both the UK and the EU. The focus now turns to the upcoming regulatory changes in Australia and Singapore. 

This industry support ensures that Rosetta users will benefit from automatic updates as global regulations evolve, sparing firms costly system updates and the risks associated with outdated platforms. 

In a year characterised by regulatory complexity, firms that adopt advanced RegTech solutions will not only maintain compliance but also position themselves for long-term resilience. As regulations become increasingly data-driven and cross-border, RegTech is emerging as not just a compliance tool but a strategic enabler of competitive advantage. 

With ongoing regulatory updates expected in Australia and Singapore, the global adaptability of platforms like Rosetta—deploying open-source industry solutions—will play a crucial role in helping firms stay ahead of the curve. The ability to future-proof compliance processes will provide a key competitive edge.