Last week, over 30 organizations including regulators, global financial institutions, trade associations and vendors met under the auspices of JWG’s Regulatory reporting special interest group (RRDS).
In this 27th meeting on regulatory reporting the group examined the feasibility of integrating prudential/statistical ‘top down’ or more aggregated reporting (e.g., CRR 430C, ESG) and ‘bottom up’ or more transactional data collection (e.g., EMIR, MiFID, CSDR).
So far this year 20 firms, 10 suppliers, 7 regulators, 5 trade bodies and 3 academic institutions have helped align risk data collection challenges and solutions and we’re pleased to say we achieved broad consensus on a path forward.
The next step is to form a task force and get going! Read on to learn about what we have found, where we are going and how you can join in.
JWG reviewed common themes from 8 European and UK reporting strategy efforts which have sought to set the path for digital regulatory reporting since 2018 which the group has previously discussed.
The group then reviewed JWG’s response to the EBA’s integrated reporting discussion paper which was mandated by the European Parliament under CRR2 in Article 430C.
We conclude that JWG’s 2021 regulatory reporting position as: the industry needs to step back and agree the digital model for exchanging information about financial services with regulators.
To accomplish this, a longer-term SupTech/RegTech vision is required to architect a better risk information system which extends today’s notion of ‘data’ to include ‘language’.
It was agreed that at the next meeting we will review other data initiatives in flight to align our key messages. These efforts include the forthcoming UK wholesale markets review and the EU financial system – supervisory data strategy which is pursuing a common data dictionary, enhancing data sharing and access, and improving the overall design of reporting requirements in EU legislation.
- Reporting task force. Solicit volunteers to help propose actions to frame the quest of 430C in a wider context, including discussion of adoption strategies on the RRDS July agenda for the July RRDS meeting on reporting strategy (22 July – see below).
- Paper and plan. Create a multidisciplinary discussion on a fresh look at the broader frame for SupTech starting in September2021with the aim of creating a paper by December which looks at the broader SupTech challenges and sets priorities for 2022.
- 2021 conference. By the time we reach JWG’s annual virtual conferenceon 16/17 November 2021 we aim to have a better understanding of how the two perspectives interact. Please contact Stokes@jwg-it.eu for more information.
Please contact PJ if you are interested in attending the next meeting on 22 July when we will listen to the debates, challenge the plans and determine how we can get momentum to achieve 2022 gains through collaboration.
JWG are also booking 1:1 discussions with volunteers who can help with this exciting programme to define a new SupTech/ RegTech core vision.
- 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 22 July special interest group meeting on International, UK & EU reporting strategies, email Corrina