RegTech IntelligenceOn the 5th of December the Bank of England and FCA held a Transforming Data Collection town hall which revealed the Bank is turning to industry standards to address 455 million errors per day. That’s a lot of thankless standards work which could change the game. We know this from hard experience. JWG has been
The financial sector is facing increasing regulatory demands, and firms need new approaches to maintain compliance while driving operational efficiency. Industry experts shared their perspectives at FINOS’ October 2024 OSSF event in NYC and demonstrated how traditional methods of regulatory reporting, often disjointed and expensive, are being revolutionized by the use of open source technologies
In a landmark third SteerCo meeting, industry leaders from FINOS’ Open RegTech Council, supported by industry think-tank, JWG delved into the groundbreaking results from the open-source regulatory reporting (ORR) initiative last month. Digital Regulatory Reporting (DRR) and the Common Domain Model (CDM) are poised to revolutionize regulatory compliance and leaders are getting ahead of the
JWG has worked with FINOS Members to define 5 potential 2024 working group projects for a RegTech council and delivered 2 overview documents on 7 September 2023 for 5 projects including Post trade digital regulatory reporting and ESG schema for CSRD, SFDR. In November 23 JWG successfully delivered an ESG data industrialisation hackathon with 65
The EU’s Digital Operational Resilience Act (DORA) dragon is getting ready for flight in 150 days. Leave your castle walls in disrepair over the summer holidays at your peril. This regulation has taken a far deeper, broader and more prescriptive approach to derisking the ‘end to end’ Information Communication and Technology (ICT) risk than ever
In a pivotal move, regulators have unequivocally thrown down the data gauntlet to banks, underscoring a pressing challenge: few banks are currently positioned to meet these rigorous standards. After taking on board 300 industry comments, EU regulators issued a new, comprehensive and granular Guide on effective risk data aggregation and risk reporting. Though the 20 page
Firms required to report under the European Market Infrastructure Regime’s (EMIR) Refit, face a looming deadline of April 29 to implement several vital changes. Those operating in the European Union and the UK will run a two-speed reporting regime until the UK’s EMIR revamp goes live on Sept. 30. “Many firms will have an obligation
JWG has worked with FINOS Members to define 5 potential 2024 working group projects for a RegTech council and delivered 2 overview documents on 7 September 2023 for 5 projects including Post trade digital regulatory reporting and ESG schema for CSRD, SFDR. In November 23 JWG successfully delivered an ESG data industrialisation hackathon with 65
JWG has worked with FINOS Members to define 5 potential 2024 working group projects for a RegTech council and delivered 2 overview documents on 7 September 2023 for 5 projects including Post trade digital regulatory reporting and ESG schema for CSRD, SFDR. In November 23 JWG successfully delivered an ESG data industrialisation hackathon with 65
JWG has worked with FINOS Members to define 5 potential 2024 working group projects for a RegTech council and delivered 2 overview documents on 7 September 2023 for 5 projects including Post trade digital regulatory reporting and ESG schema for CSRD, SFDR. In November 23 JWG successfully delivered an ESG data industrialisation hackathon with 65
Global systemically important banks (G-SIBs) have increasingly turned to the open-source Common Domain Model (CDM) to retool their reporting systems and advance digital regulatory reporting (DRR) while boosting interoperability. Goldman 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
With the CFTC UPI heading into production for Interest Rate, Credit, Foreign Exchange, and Equity asset classes on 29 January, it’s a good opportunity to step back and look at opportunities to simplify derivatives regulatory reporting this year. We asked Chad Giussani for his perspectives in advance of our conference which he unplugged in 2020!
Regulators are disappointed with Banks’ data management and they have been careful to point out that they expect ESG data to be up to scratch. Getting ESG data right is now a board-level imperative for 2024. The implementation of Corporate Sustainability Reporting Directive (CSRD) will formally put controllers on the hook. However, unlike some regulatory
In this session, PJ Di Giammarino will facilitate the RegTech Council’s team and tooling approach for the 1 day hackathon on 8 November.
In this session, PJ Di Giammarino will facilitate the RegTech Council’s creation of a use case(s) preparation pack for the 1 day hackathon on 8 November.
In this session, PJ Di Giammarino will facilitate the RegTech Council’s agreement of the use case(s) for the 1 day hackathon on 8 November.
In this session, PJ Di Giammarino will facilitate the RegTech Council’s ESG efforts to solve the use cases agreed for the 1 day hackathon.
In this session, PJ Di Giammarino will lead a discussion to brief the industry on the RegTech Council’s ESG efforts and solicit input on the objectives for a 1 day hackathon on the 8th of November.
New, exacting BCBS 239 data quality expectations are coming into force just as EMIR Refit and JFSA derivative reporting is put into production 200 days from now. Businesses will be under pressure to deliver lineage for their data or risk fines and reputational damage. JWG’s DRR RegDelta is a RegTech solution that helps companies maintain
The Financial Conduct Authority (FCA) has asked firms to provide granular information to identify investment and execution decision makers more accurately in Markets in Financial Instruments Regulation (MiFIR) transaction reports. The MiFIR reporting regime went live in 2018. The FCA uses MiFIR transaction reports, in part, to conduct market surveillance for market abuse and insider
The European Securities and Markets Authority (ESMA) set out its five-year data strategy aimed at reducing financial services firms’ compliance burden and establishing itself as an enhanced data hub. “We want to contribute to reducing the compliance burden for companies and facilitate data reporting by means of increased standardisation and the use of modern IT
The next five years are shaping up to be the most strategic period of regulatory engagement on industry data since the financial crisis. ESMA’s new 5 year data strategy illuminates a well thought through path to achieving real transparency though technology-enabled data hubs that cover the full scope of current and new capital markets activity.
Senior managers have 163 days left to get ready for new rules in Ireland which will become effective on the 31st December 2023. In the wake of the pandemic, FinTech and digital assets have become real, the next big round of post-crisis derivatives reforms is in here, trading rules are being rewritten and the regulatory framework
As the deadlines for compliance with new, complex derivatives rules approach, many firms are at risk of facing hefty fines from regulators if they are found wanting. JWG is calling on all firms to join their next global virtual seminar on 29 June to discuss strategies for deploying proven DRR RegTech to manage their regulatory
RegTech promises to turn policy documents to rule sets that describe what good looks like in the operational language of the systems used by the business. AI can play a role in applying controls, but it needs to be carefully supervised so that the humans are in the loop and overseeing the code. Experts at
Winning the ESG data Marathon in 2023 With the ever-increasing focus on ESG transparency from regulators and clients, firms are racing to meet the requirements needed to make their mark in the global marketplace. This race requires tens of thousands of market participants to produce data according to different standards. However, with a proper plan
Trading desks face unprecedented levels of regulatory change from the mechanics of the markets and how they monitor them, to how they interact with customers, the way they de-risk their technology suppliers and provide information to regulators. This article summarises the critical changes and lays out the context for our 22 March virtual trading seminar.
Project planning, resourcing, EMIR Refit, CFTC and global operating model
Derivatives programme status focused on EMIR Refit and CFTC reporting delivery and target operating model development
Digital regulatory reporting (DRR) music has upped tempo in 2022: Internationally, the Financial Stability Board (FSB)has become the new home for reporting requirements and is poised to launch its 2023 workplan In the US, the derivatives sector is enjoying the benefits for CFTC rewrite reporting which start next month before deploying DRR code across the
The aim of this group is to look at the broader frame of supervisory technology (SupTech) with a view to creating a paper covering challenges and 2022 priorities
A top-tier European bank has successfully implemented digital regulatory reporting (DRR) technology to comply with the U.S. Commodity Futures Trading Commission’s (CFTC) amended swap data reporting rules, a key milestone in a years-long industry effort to streamline often complex obligations. BNP Paribas yesterday announced it used DRR in a real-world, production-level environment, with a successful
The European Commission has pushed ahead with digital regulatory reporting — which it views as a central workstream in its overall agenda to make financial services fit for the digital age — while UK regulators have sidelined similar initiatives. The Commission is taking a deliberate approach to testing technology and frameworks for delivering machine-readable and executable
Financial services risk reporting problem statements
Project planning, resourcing, EMIR Refit, CFTC and global operating model
Derivatives programme status focused on EMIR Refit and CFTC reporting delivery and target operating model development
Accountability regimes will force board members and senior management on the Continent to rethink compliance for the Senior Executive Accountability Regime (SEAR) in 2024. The new regime will ‘gold plate’ current EU law and present international firms with major new hurdles. Irish bankers will be individually accountable for their responsibilities, with fines and even jail
Project planning, resourcing, EMIR Refit, CFTC and global operating model
Derivatives programme status focused on EMIR Refit and CFTC reporting delivery and target operating model development
The aim of this group is to look at the broader frame of supervisory technology (SupTech) with a view to creating a paper covering challenges and 2022 priorities
Financial services risk reporting problem statements
Derivatives programme status focused on EMIR Refit and CFTC reporting delivery and target operating model development
I listened into a very interesting webinar presented by the UK’s Financial Conduct Authority (FCA) earlier this year about their usage of and experimentation with what all regulators seem to be calling ‘suptech’ these days. Now there was variance on the webinar among FCA speakers around the pronunciation of said moniker—’soup-tech’ was one variant, ‘supp-tech’
The CEO’s reporting challenge is considerable. Regulators are asking firms to raise the standard of regulatory returns to the same care and diligence given to financial reports and Basel IV is on its way for 2023. New approaches to interpreting reporting obligations and validating the calculations required with additional data sources can help. JWG, an
Derivatives programme status focused on EMIR Refit and CFTC reporting delivery
The aim of this group is to look at the broader frame of supervisory technology (SupTech) with a view to creating a paper covering challenges and 2022 priorities
Financial services risk reporting problem statements
Project planning, resourcing, EMIR Refit, CFTC technical architecture
The aim of this group is to look at the broader frame of supervisory technology (SupTech) with a view to creating a paper by December 2021 covering challenges and 2022 priorities
Derivatives programme status focused on EMIR Refit and CFTC reporting delivery
Financial services risk reporting problem statements
Post 30 Nov FX sprint digitizer meeting to discuss conclusions and forward plans
The aim of this group is to look at the broader frame of supervisory technology (SupTech) with a view to creating a paper by December 2021 covering challenges and 2022 priorities
Project planning, resourcing, EMIR Refit, technical architecture
Derivatives programme status focused on EMIR Refit reporting delivery
Financial services risk system design criteria and specifications
CFTC project planning, resourcing, EMIR Refit, semantic tooling
amid ongoing, fast, deep technological revolution, how can we master “technogenous” risk and keep markets stable?
The aim of this group is to look at the broader frame of supervisory technology (SupTech) with a view to creating a paper by December 2021 covering challenges and 2022 priorities
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. Register Here Regulatory demands picking up pace Last quarter
Building block foundational concepts and gaps
Derivatives programme status for CFTC rewrite and EMIR Refit reporting delivery
The aim of this group is to look at the broader frame of supervisory technology (SupTech) with a view to creating a paper by December 2021 covering challenges and 2022 priorities
Agreeing a digital regulatory reporting vision for regulated, regulator and suppliers that serve them
It might be summertime but the work hasn’t stopped for those working in compliance. The constant barrage of tweaks to existing reporting regimes and wholesale refreshes such as the incoming derivatives reporting changes by the Commodity Futures and Trading Commission (CFTC) have kept teams busy. In Europe, Brexit has also impacted how firms must deal
CFTC project planning, resourcing, EMIR Refit, semantic tooling, data sourcing, eligibility modelling,
Presentation used to discuss DRR programme status 1.Global DRR programme status 2.Architecture WG conclusions and plans 3.Next steps 4.AOB
21 July meeting materials for review of semantic tooling in advance of programme oversight committee meeting 6.
To discuss CFTC reporting rewrite timelines, objectives, critical path, milestones, and delivery options. Potential risks were reviewed, and secretariat recommendations to accelerate CFTC plans were discussed.
The group convened Programme Oversight Committee 3 (POC 3) on 29 June to discuss CFTC reporting rewrite timelines, objectives, critical path, milestones and delivery options. Potential risks were reviewed and secretariat recommendations discussed.
JWG summarized regulatory 2021 reporting efforts and explained how there are both prudential/statistical ‘top down’ or more aggregated reporting (e.g., Risk, ESG) with the ‘bottom up’ more transactional data collection (e.g., EMIR, MiFID, CSDR). The RRDS agenda will seek to share lessons learnt across both types of regulatory reporting innovations this year. Though concepts have been proven and studies generally align, without a more concrete description of the future risk information system which extends today’s notion of ‘data’ to include ‘language’ regulatory data efforts will continue to cost tens of billions while failing to achieve their policy objectives.
Training materials for Cohort 3
By Priya Kundamal, DTCC The fragmentation of trade reporting rules and the lack of a common data set across jurisdictions hinders transparency and global risk monitoring, writes DTCC’s Priya Kundamal. Market disruptions often spur change. In response to the 2008 Global Financial Crisis, one of the G20 reforms was to mandate the reporting of
Target outcome: to complete a targeted Fx scope of 15-20 fields by end January and set the stage for a repeatable approach in Q121 Please note: The sprint relies on a set of DRR training videos produced from a previous DRR course which are attached to this meeting notice (see ‘supporting documents’ below on the
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. Members also expressed their support for launching a US-focused project on CFTC implementation as part of the Global DRR programme.
As will be noted in the forthcoming minutes of the second Global Derivatives DRR Programme oversight Committee (POC2) meeting, some members expressed their support for a US-focused project on CFTC implementation. We have agreed to work with US ISDA colleagues to convene a meeting to review potential CFTC project objectives, risks and targets with
Global Derivatives digital regulatory reporting EMIR Refit and CFTC programme plan, milestones, priorities and next steps.
JWG summarized regulatory 2021 reporting efforts and explained how there are both prudential/statistical ‘top down’ or more aggregated reporting (e.g., Risk, ESG) with the ‘bottom up’ more transactional data collection (e.g., EMIR, MiFID, CSDR). The RRDS agenda will seek to share lessons learnt across both types of regulatory reporting innovations this year
Digitization ramp-up and continued focus on CDE and EMIR Refit field modelling to deliver output that can meet ESMA obligations and help with the delivery of CFTC reporting requirements in 2022.
Inputs: ─Firm expectations of key milestones and dependencies for EMIR Refit and CFTC ─Draft planning assumptions to be challenged in POC2 (see objectives below) ─1 representative per organisation DRR programme planning session objectives: ─Targets. Set DRR MVP for the year: deliverables by quarter by regulation ─Modelling rates. Review Digitizer progress to date ─Interdependencies. Key dependencies
4 half day training sessions in the US ET am to orient Digital Regulatory Reporting Digitizers By the end of the course participants will be able to transpose regulatory text into a CDM functional expression in Rosetta for the purposes of generating regulatory reporting. The course relies on a set of DRR training videos produced
Presentation used to discuss DRR programme status 1.Digitizer Cohort 2 update 2.Programme planning update 3.Architecture WG conclusions and plans 4.Next steps 5.AOB
Some suggest that, had data on over-the-counter (OTC) derivatives transactions been available before the financial crisis in 2008, the build-up of risk could have been foreseen and managed very differently. This is what led to G20 demands that all derivatives products be reported to trade repositories and made available to regulators. But as early as
4 half day training sessions in the US ET am to orient Digital Regulatory Reporting Digitizers By the end of the course participants will be able to take a regulatory text and transpose it into a CDM functional expression in Rosetta for the purposes of generating regulatory reporting. The course relies on a set of