RegTech Intelligence 
Regulatory reporting is moving out of the backwater and into the limelight. New RegTech tooling is here and leaders are deploying it now and regulators are defining their SupTech approaches. The regulators and regulated have all made progress and the sector is building momentum in Q4.
Regulatory demands picking up pace
Last quarter it became clear that supervisors are growing impatient with poor quality data. With 5 CFTC fines and a Dear CEO letter in the UK, both sides of the Atlantic are starting to take action.
The Bank of England has issued a progress report on its 10 year transformation of data collection which now has 50 institutions on board, funding in place and roadmap in progress which will be unveiled in the second half of 2022.
The European Commission’s supervisory data strategy is also making progress and is expected to release findings shortly.
In parallel, the political thirst for more transparency continues. A decade on from the last round of new regulatory reports post the crisis, scores of new reports are due to be delivered for more market transparency and prudential oversight in the next 36 months.
As noted by the FCA in the annual Mansion House speech, the bills for these new reports are huge, but a mere fraction of the estimated £1.5bn to £4bn a year which 58,000 firms spend to satisfy 20,000 in the UK alone.
Industry response getting traction
JWG were pleased to host a RegcCast with Dawd Haque, Deutsche Bank, Marc Gratacos, TradeHeader and Fraser Hall, Adenza talk about the big regulatory demands for new data and how new technologies are able to change the game, not only for the regulator, but for the industry as a whole. You can find the episode here.
The group discussed the huge business and supply chain opportunities which come with a focus on the ‘end to end’ view of the sector. A far cry from just completing a single regulatory reporting project this new approach has the potential to transform your business and dramatically reduce the cost of satisfying the regulator’s thirst for information.
This huge opportunity will not come without industry change. The efforts of the past decade to model the ‘end to end’ lifecycle of a trade have proven that safe space is required to bring the many disciplines together to share knowledge and agree digital standards.
The next generation starts to emerge
JWG has been at the forefront of digitalising regulatory reporting for the past 5 years and share our perspectives about how the transformation itself is a very collaborative exercise which cannot be mandated from upon high.
On the 5th of October JWG’s independent, safe space hosted a the second meeting of the Digital Reporting Task Force. The group framed the building blocks for the target system of data exchange and shaped the input on the new system.
5 October 2021 DRTF conversation
Task force members can find the presentation materials here and the next meeting will be in your diaries shortly.
Our subject matter experts look forward to deep insight on the next generation of regulatory reporting from supervisors, academia, trade associations, think-tanks and suppliers at our annual conference on 16-17 November.
In particular they look forward to hearing:
- What are the states of industry reporting practices? Are they sustainable?
- How can new technology change the oversight system design criteria?
- Where firms are in their journey toward digitalizing reports?
- What are the priorities for migrating to better information sharing systems?
- How will DRR tooling be used – can it become a gold standard?
- How will firms deploy reporting RegTech to other parts of the business?
- What can regulators and suppliers do now to prepare for the future?
- How can other jurisdictions leapfrog by deploying DRR and SupTech?
- Can risk reporting be fast-tracked with the DRR approach?
- Can trade reporting be married with prudential and statistical returns?
We look forward to seeing you soon!
Additional channels:
- To join the JWG Reporting special interest group, email Corrina
- Access the JWG Reporting LinkedIn here or Trading here
- To create your own JWG RegTech Intelligence Hub, sign up here
- To register for JWG’s 16/17 November 2021 conference, see here
More resources:
- JWG’s Digital Reporting Task force update here
- Global Derivatives Digital Regulatory Reporting Programme here
- Thomson Reuter’s regulatory intelligence analysis of PRA Dear CEO letter here
- RegCast 4: Transforming data collection – UK BoE / FCA spotlight here
- RegCast 6: Digitizing derivative reporting with DRR here
- JWG 2012 Dirty Windows: regulating a clearer view – The €24 billion case for EU transparency
- JWG 2020 new approaches to Digital Regulatory Reporting analysis
- JWG 2021 research on a tipping point with the Industry’s Common Domain Model