RegTech Intelligence 
Last week marked a key turning point for the derivatives industry as it moves towards aggressive implementation deadlines for regulatory reporting on either side of the Atlantic.
After a decade of international regulatory reporting the sector is marshalling resources to meet new CPMI/IOSCO implementation mandates for newly standardized common data elements.
A poll conducted as part of a London Stock Exchange briefing on EMIR Refit captured showed a mere 38% looking at external analytics. Given the regulators’ frequent refrain about poor data quality one might find this surprising, but it could well be because new RegTech and SupTech tooling is on its way.
Last week, over a dozen organizations including global financial institutions, trade associations and vendors met under the auspices of JWG’s Global Derivatives Regulatory Reporting Programme to review progress against plans to digitize reporting best practice, produce a test pack of data and machine executable rules for EMIR Refit.
It was agreed that the programme was on target to delivering an EMIR Refit-ready Common Domain Model (CDM) for all asset classes in scope of the regime in Q1 22. This will give firms ample time for integration and testing in advance of the anticipated go-live date which is anticipated to be Q4 22.
The total number of trained DRR digitizers is projected to double over the summer giving the industry a total of 40+ people who are working on the CDM DRR model this summer. Cohort 3 training will take place 22-25 June.
Members also expressed their support for launching a US-focused project on CFTC implementation as part of the Global DRR programme. By delivering for two regimes in parallel, the programme will be able to take on additional regimes more effectively.
A separate CFTC programme planning session will be held on 29 June 2021 to discuss how to leverage the DRR model in a pragmatic way which will get maximum benefit with minimum risk to CFTC implementations.
The group also agreed to launch the DRR semantic working group which will assist the digitizers and legal definition owners with disambiguation of requirements.
Separately, JWG summarized the industry’s learnings from the programme in a response to the EBA’s consultation on an integrated reporting system (mandated by CRR2 430C).
These findings will be discussed with global regulators, regulated firms and their suppliers at JWG’s next reporting special interest group meeting on 17 June on linking trade and risk data and plans will be set to prepare for JWG’s virtual November conference: NextGen RegTech meets SupTech.
DRR Members can access the programme oversight committee presentation here and minutes here.
Reporting SIG members can access the May presentation and minutes here.
Additional resources:
- To join the JWG Global Derivatives Digital Regulatory Reporting Programme, email Corrina
- To access the JWG DRR members access area here
- To create your own JWG RegTech Intelligence Hub, sign up here
- To register for JWG’s 16/17 November 2021 conference, see here
- To join 17 June special interest group meeting on linking trade and risk data, email Corrina