RegTech Search

…defined standards but, at the moment, there are no structures in place to do so. Enter the KYC clearing house. This house would involve firms and utility providers coming together…

…ICE Clear Credit LLC US 12. ICE Clear U.S. Inc. US 13. Indian Clearing Corporation limited India 14. Japan Commodity Clearing House Co. Japan 15. Japan Securities Clearing Corporation Japan…

…risks. But they are risky. A clearing house could fail in at least three different ways: 1) One or more clearing members could default, and the resulting losses could blow…

…region’s rules on clearing houses have so far ended with no agreement, causing unnecessary uncertainty in the derivatives markets. Clearing houses are critically important as risk managers in the derivatives…

…Q19: What kind of cost should be reported (e.g. regulatory levies, taxes, mandatory clearing fees) and how should this data be presented to enable recipients to assess the total consideration…

…contributions from clearing members, and use these amounts as a bulwark against losses should a clearing member default. The different levels in the default waterfall – margin, CCP equity, default…

…Area (EEA) then, for any combination of Financial Counterparty (FC), such as banks, asset managers, insurers; and Non-Financial Counterparty (NFC), the clearing obligation would apply. The clearing procedure began back…

…market, the rule will – as of next month – prohibit US clearing houses from clearing interest rate swaps for the largest EU banks, thus moving more clearing activity to…

…clearing and index licences as part of MiFID II. Open access allows users to process trades through a clearing house of their choice, irrespective of where they traded. This non-discriminatory…

…clearing houses as equivalent to their own. This marks further progress in the use of clearing houses to bridge interactions between buyers and sellers, mitigating the risks of a domino-effect…

…financial services, namly Euro-denominated trading. The ECB dictates that ‘key technical facilities’ and information systems of clearing houses with a large proportion of euro-denominated business must be located within the…

…derivatives markets. Trade reporting, open access to clearing houses and high-frequency trading were just a handful of the contentious topics discussed during an two-days of open hearings in Paris. The…

…if an intermediary or a counterparty, venue or clearing house involved in the transaction is within (or has a sufficient nexus to) a jurisdiction within scope, then they may be…

…Thomson Reuters survey of 200 in-house lawyers found that the main hurdles to AI adoption in-house were cost, reliability and appetite for change. This meant that AI in-house was set…

…a different timing solution. 5. Proposals for mandatory clearing (EMIR) The mandatory clearing obligation will be implemented in Europe in the coming months, beginning with: – A clearing obligation on…

…is authorised under EMIR and ESMA’s decision to mandate central clearing of certain derivatives. For example, Nasdaq OMX has been authorised under EMIR to provide central clearing services for a…

The English High Court handed down an important judgement last year relating to its duties when exercising close-out powers granted to it pursuant to a clearing agreement. The outcome of…

…problems so far to warrant some large fund managers deciding to take the reporting process in-house,” says PJ DiGiammarino, chief executive of regulatory think tank JWG–IT based in London. “Add…

…be cleared through central clearing houses (CCPs) to control risk factors. EMIR similarly requires that certain derivative contracts are cleared through a CCP and traded on a trading venue. Whilst…

Round the table: ​ Firms: Blackrock, BNP, Citi, Credit Suisse, Deutsche Bank, GAM, HSBC, Morgan Stanley, Natwest Markets, Railsbank​ Regulator: Companies House, FCA​ Infrastructure: BvD, Ince, SEI​ 25 people will…

…in the UK was announced on the Companies House website the day it went live – much to the chagrin of the compliance specialists who have been looking for answers…

…in the clearing relationship between clearing member and client where ESMA expects the clearing member to “make a proper initial assessment of any prospective clearing client according to the nature,…

…access to clearing and a draft RTS to amend the phase-in period of the clearing obligation which will be submitted to the European Commission (EC) for review. RegDelta will continue…

…to discount the credit valuation adjustment (CVA) risk from their capital for all OTCD trades with counterparties that meet certain criteria i.e. non-financial corporates under the clearing threshold for EMIR…

…execution of a transaction under MiFID. Accordingly, the following counterparties will have to report their ETD trades to TRs: Central Clearinghouses (CCPs) clearing the trades; Clearing members of the CCP…

It is common knowledge that the central clearing and risk mitigation requirements apply to any third country firm trading with an EU entity. However, it may come as a surprise…

…consultation of the EMIR review. It makes suggestions to alter the EMIR framework in three key areas: Clearing obligation: consolidating the clearing process, introducing tools allowing for the suspension of…

…below, we pick out five key changes that are being proposed. Clearing obligation. ESMA is recommending two minor changes to the clearing obligation. These are designed to streamline the clearing…

New, prescriptive EU clearing obligation rules will require new counterparty classification and monitoring systems. Is this a standard data hub opportunity? With EMIR having entered into force on 16 August…

…right). The BIS has estimated the aggregated costs of obligatory OTC clearing (EMIR, Dodd-Frank etc.), holding additional capital against OTC derivative transactions (Basel III) and the subsequent increased clearing fees….

…ways — extracted from a central counterparty clearing house (CCP), extracted by regulators —potentially changing reporting processes entirely. Some of these could disrupt the cottage industry that has emerged to…

…the problem areas and prioritise the potential approaches – including the role of a KYC clearing house. Email CDMG@jwg-it.eu if you wish to attend, or see here for more details….

…to meet the above requirements, notably ISDA’s proposal for OTC derivatives and FOA’s (Futures and Options Association’s) proposal for ETDs (now in the EACH (European Association of Clearing Houses) whitepaper)….

…the interpretation challenges through a ‘KYC requirements clearing house’. Accordingly, we will hold 2 meetings in April. This first one is open to all members of financial institutions but will…

…OTC derivatives) to clearing houses and individual trading entities (for bilaterally negotiated transactions). Distinct challenges still remain for reporting both exchange-traded and OTC-traded derivatives. For bilaterally negotiated contracts, it is…

…and regulatory language; a Regulatory Clearing House to centralise the automated dissemination of rules to regulated entities, collecting information from entities and collecting market data. Perhaps emboldened by the Commission,…

Since President Trump’s signing of Executive Order 13772 back in February 2017, the Financial CHOICE Act has passed through the House of Representatives with a 233 to 186 vote. The…

…operational approaches for vast amounts of data that is not kept in house today. This will have large impacts across the supply chain, as products are classified and governance strategies…

…Collateral haircuts used by Central Clearing Parties and it procyclicality should be addressed in the context of EMIR review Any counter-cyclicality measures need to be agreed first at an international…

…be reported as terminated and new contracts resulting from clearing shall be reported. If a contract is concluded and cleared on the same day, only the cleared contract should be…

…as Dodd-Frank’s provisions for mandated swaps clearing and reporting have acted as precursors for EMIR in the EU, last week’s requirement that “made available to trade” (MAT) interest rate swaps…

…clearing threshold (NFC+). While distinguishing FCs from NFCs can be done in little time, firms must assess whether any of their OTC derivative activity with NFCs has a value above…

…is that, despite central clearing being mostly welcomed as a risk reducing concept, the frameworks for central clearing are being implemented on completely different timescales and of differing complexity across…

…review experience. In the UK, one method bad actors use to pass KYC is registering businesses at Companies House with Standard Industrial Classification (SIC) codes aligned with low-risk businesses. Bad…

…now and will be debated under Chatham house rule with audience Q&A 6+ regulators, 12+ firms and 8 tech SMEs will debate winning strategies and share lessons learnt in the…

…Bill is expected to make its way through the House of Commons by late 2022. In the US, the Senate introduced the Responsible Financial Innovation Act [18] in a new…

This month, the House of Commons Committee of Public Accounts released its forty-first report of session 2015-16 which looks at ‘financial services mis-selling: regulation and redress’. The Committee is tasked…

…significant institutions under ECB banking supervision Finally, the third stage, planned for mid-2020: anonymised information will be gathered on mortgage loans to households and credit granted to sole proprietors. 8….

…in advance of our annual virtual conference. Register here Orders, Audits and housecleaning In the last 18 months, enforcement action globally shows firms failing to manage risk and compliance across…

…trading venue classifications, including systematic internalisers The trading and clearing obligation – defining “sufficient liquidity” and other factors A forward look at a more specialised and higher cost OTC market…

…what about the rest of the year? Reporting frenzy will quickly be followed by the move to compulsory clearing for certain trades, as soon as ESMA approves a CCP for…

…clearing obligation comes into force later this year because, while failure to report trades accurately can cause headaches for regulators and potentially fines for market participants (some way down the…

…position holder. Both Investment firms and clearing firms are likely to send reports containing the same information. As such, instead of submitting duplicate reports, an investment firm may be able…

…hold a secret master list. However, the stakes are still being raised. This classification will not only support many aspects of EMIR implementation, including the clearing obligation (arguably the centrepiece),…

…the IR swaps won’t reasonably be completed until they are required to be cleared on SEFs. While some IR swaps must start clearing on 15 February 2014, the Commission granted…

…institutions. Credit institutions, branches and subsidiaries subject to a separation decision may only continue trading credit, FX and interest rate derivatives that are “eligible for central counterparty clearing” to hedge…

…the Bundesbank executive board. European Union member states last month agreed to establish a pilot programme to use distributed ledger technology (DLT) in trading, clearing and settling financial instruments. The…

…Sachs, JP Morgan, Barclays and BNP Paribas have all piloted various projects related to trade and transaction reporting and are examining further use cases, such as clearing and settlement, improved…

Why EMIR has some banks threatening to stop trading derivatives by 15 September. Under EMIR there are three kinds of counterparties: financial (FC), non-financial (NFC), and non-financial over the clearing…

…the order, including execution venue fees, clearing and settlement fees and any other fees paid to third parties involved in the execution of the order”. The FCA’s thematic review, Best…

…An incorrect classification could mean clearing against the wrong counterparties, holding too much or too little capital against derivative exposures, and the potential for multiple fines from a single mistake….

…clearly enhance is central clearing where executed trades could be recorded on each of the counterparties’ ledgers without the need for an intermediary. While, as has been rightly pointed out,…

…collateral, cash currency, clearing and settlement and maturity Central banks: e.g., US Fed, which provides FedWire service for tracking principal and interest, daily balance report, list of participants • Brokers:…

…clearing between FCs and NFCs+ is predicted to begin in March 2014. So the only question is when enforcement will begin. However, many firms, especially amongst the buy-side and the…

…to good data. The REFIT Regulation offers smaller firms some concessions in this regard. As a gesture to non-financial counterparty firms below the clearing threshold (NFC-), the “Mandatory Delegation” of…

…White House briefed TikTok stars about the war to influence online content. The Russian government is paying TikTokers to produce pro-Kremlin content. The Ukrainians, too, have a social media strategy…

…Chatham house rule dinner to help CEOs sleep at night knowing they have plans in place to improve regulatory data quality. Leveraging the discussion at JWG’s global annual conference on…

…house rule roundtables designed for public and private sector policy, operations, data and technology executives to discuss industry approaches and consider effective strategies across the markets, technology infrastructures and data…

…technology houses. This affects all suppliers – including the large firms that provide custody services, depositary functions, payments and the like. The FSA has recently brought the increasing importance of…

…investment firms are generally testing the water for what works and what doesn’t. For example, some banks are developing and testing in-house voice-to-text tools and are finding some success, with…

Our latest edition of the members-only newsletter, RegBeacon, is now available here. In this issue we’ve looked at the key issues to be aware of as we head into summer,…

…how can the UK and EU align to US priorities discussed at our NYC roundtable in August? Join JWG and Solidatus for a Chatham House Rule roundtable designed for risk,…

Digital Regulatory Reporting Architecture Working Group meeting 17 for firms to review results of ‘house view’ discussions on path forward and best practices as well as service model and next…

…how can the UK and EU align to North American priorities discussed at our NYC roundtable in August and London in October? Join JWG and Solidatus for a Chatham House…

Digital Regulatory Reporting Architecture Working Group meeting 16 for firms to review results of ‘house view’ discussions on path forward and best practices….

…now, as a priority, make some key decisions over how they will meet the reporting requirements, such as whether to delegate reporting or to build reporting systems in-house. However, the…

…how? Join JWG and Solidatus for a Chatham House Rule roundtable designed for risk, compliance, data and governance executives in financial services to discuss industry approaches and devise effective strategies…

…management AND transition from vast legacy infrastructures in a cost-constrained environment? Join JWG and First Derivative for a Chatham house rule roundtable designed for public and private sector policy, operations,…

Are you enjoying your summer? Ready for some holiday reading? Our latest members-only newsletter, RegBeacon, is now available here (after logging in, you can find RegBeacon on the publications page)….

…or persons with significant control register from 6 April and, as of 30 June 2016, will be required to submit the information to Companies House. A company will need to…

The FCA have requested that for the meeting with Companies House (CH) be limited to the Citadel leaders and me as the spokesperson for the RegTech Council in December. Accordingly,…

…excitement around RegTech’s potential in other areas offers many opportunities for discussion about these emerging tools. Collaborative achievability The application of distributed ledgers and smart contracts to clearing and settlement…

…proposal made significant advances in outlining those that would not be subject to FTT, such as central clearing bodies, member states and public institutions, and central banks. However, some activities…

…points have been mandated (e.g., OTC derivatives clearing on exchange), risk reporting requirements have been defined by country without the definition of standards that are required to make the information…

…the FAQ does not cover, most notably algo trading, clearing and transparency. Since the FAQ relates to a pre-existing regulation, the advice contained within it is effective as of now….

…clearing and settlement processes High-fidelity transparency. Digital assets will come into the light as regulatory reporting obligations bring them into scope. While we wrestle with the ESG reporting conundrum, RegTech…

…derivatives markets and in particular of EU CCPs With the first set of clearing obligations now applicable for category 1, and the deadlines for categories 2 and 3 fast approaching,…

…of EMIR. Looking backwards, we can now see how poorly the industry has dealt with the first round of change and therefore how high the bar for reporting obligations, clearing…

…TRs and the different elements of firm compliance: clearing, portfolio reconciliation, dispute resolution etc. As mentioned, the impact of this is going to result in further work for legal and…

…means anything in contravention of the clearing rules (Articles 4 and 5) or the rules for accessing a CCP/market, reporting and mitigating risk against non-financial counterparties (Articles 7-11), and the…

…trading, exchange, and clearing monitoring. Both agencies are capable of recalling essential employees in the state of an emergency. The SEC can operate at this level up to around three…

…event of another crisis regulators the derivatives market EMIR also requires firms to clear derivatives through central clearing counterparties (CCP) and take other risk mitigation measures. ‘Dirty windows’ “Regulators were…

…yet but most of the important aspects of the rules are clear.’ Amongst their wider clearing, reporting and risk-management requirements, firms are compelled to confirm their counterparty status to ESMA,…

…‘who’ should report. Jurisdictional questions were highlighted as recently as last month, following a communication by a leading Dutch clearing bank notifying its clients that (under certain caveats) they would…

…trade repository (TR) reporting and the use of central clearing. Although smaller countries have been a bit slower on the uptake, signs of international understanding and implementation are generally positive….

…industry in 2014. 3. Turn up the volumes In OTC derivatives markets, once we’ve got compulsory clearing and trade reporting out of the way, a picture of the new BAU…

…needing to be classified under new regimes and their status assessed for the clearing mandate. In addition, MiFID II’s new and enhanced suitability and appropriateness regime will impact across the…

…update: 4 (3) New initiatives added to this section include: Ensuring continuity of critical clearing services: the Bank of England’s approach to discretionary payments by central counterparties Allowing a risk-based…