Reporting Reimagined in the APAC Region

The second quarter of 2025 marked a critical inflection point for regulatory reporting across Asia Pacific, as the region deepened its transition from fragmented compliance regimes to a more harmonized, data-centric ecosystem. Several jurisdictions — most notably Singapore, Australia, and Japan — accelerated reforms aimed at modernizing OTC derivatives reporting, with a sharp focus on data standardization, UPI/UTI implementation, and ISO 20022 adoption. Hong Kong and Korea will move towards this direction from September and October respectively.

Regulators across the region have moved beyond rule setting and are now actively driving supervisory enforcement, thematic reviews, and audit-driven remediation programs. Complex products like FX TARFs continue to challenge reporting frameworks, prompting new guidance discussions among industry bodies. Meanwhile, cross border regulatory cooperation is strengthening, signaling a clear push toward convergence.

With multiple go-live milestones on the near horizon — including the HKMA’s revamped reporting regime — Q2 served as a wake-up call for firms to treat regulatory reporting not as a back-office task, but as a strategic enterprise capability that demands cross-functional ownership, smarter technology, and rigorous data governance.

 Last Call for Readiness: Hong Kong’s Compliance Clock Is Ticking

Firms in scope of HKMA rewrite should now be undergoing UAT actively. In our May Roundtable held in Hong Kong, Cappitech raised awareness on Day-One Readiness, addressing key industry challenges with a proposed path ahead. Most importantly, the session also offered recommendations to attendees on what to look out for from September 29 onwards.

In our June Hong Kong Market Intelligence Roadshow, Cappitech also featured a plenary on Regulatory Reporting Reimagined, discussing the future of regulatory reporting, including the adoption of new technology in a regulatory function. Participants also concurred that regulatory reporting would continue to evolve, as regulators will continue to expect greater consistency in reporting standards.

Key Takeaway: The HK rewrite compliance date is now within sight. HK firms lagging should expedite readiness assessments and strengthen engagement across business, operations, and technology teams. The Hong Kong rewrite is not a tech upgrade; it is a data transformation initiative. Reach out to Cappitech on how we can help.

Moving Forward: From Burden to Benefit, from Obligation to Opportunity

We are observing a growing emphasis on data quality among APAC firms, as the perception of regulatory reporting shifts—from a burdensome obligation to a strategic operational advantage. Forward-thinking firms are increasingly investing in robust data management frameworks, recognizing that high-quality data underpins both compliance and business efficiency. In this context, many clients are exploring quarterly health checks to assess the integrity of their reporting and embedding reconciliation processes into their daily BAU operations. On the technology front, similar to Cappitech’s advancement in AI-driven data mapping and transformation, firms have shared their own progress—such as deploying post-trade query chatbots or advancing toward exception-only workflows powered by Robotic Process Automation (RPA). These initiatives are being thoughtfully designed, rigorously tested, and strategically implemented to enhance operational efficiency and reduce costs.