Under EMIR, every trade reported must be matched between counterparties. If the two sides do not align on key details such as notional, UTI or trade date, the Trade Repository flags a mismatch.
Common causes include:
Booking differences: counterparties apply different conventions or templates
Timing gaps: one party reports before the other, creating temporary breaks
Manual errors: even small differences, such as rounding on notional values, can block pairing
High mismatch rates undermine the quality of regulatory data. They can indicate weak controls and, if persistent, attract regulator scrutiny or remediation demands. If the numbers do not line up, supervisors often assume the processes behind them do not either.
Effective oversight means more than just tracking mismatch percentages. Firms should:
Review daily reconciliation reports for pairing success rates
Drill down into root causes by counterparty, desk or product type
Use trend analysis to identify systemic patterns instead of one-off breaks
Focus on process remediation, not just adjusting values after the fact
EMIR reporting only works if both sides tell the same story. Strong oversight ensures mismatches are not just spotted but are fixed at the source.
Tired of chasing mismatches? Book a demo and see how Fund Recs keeps trades aligned from day one.