Clarient Global LLC (Clarient) and the FIA Technology Services, Inc. (FIA Tech), a wholly owned subsidiary of the Futures Industry Association, have partnered to introduce a streamlined solution to simplify the collection and reporting of Ownership and Control Reporting (OCR) information required by the Commodity Futures Trading Commission (CFTC).
The Clarient OCR Data Maintenance and Collection Service provides firms with an easy-to-use platform that simplifies the data entry and information submission process to all market participants required to satisfy new OCR reporting rules from the CFTC. The new rules, which go into effect in April 2016, will result in a significant increase in trader and account information required to provide additional identification and market participant data to the CFTC through automated form filings.
Shawn Brody (SB), Vice President, Clarient Product Management, spoke with DTCC Connection (DC) to share her insights on the OCR Data Collection and Maintenance Service.
DC: How does the Clarient OCR Service work?
SB: Clients provide their OCR data to Clarient and Clarient submits all OCR data with the designated Futures Commission Merchants (FCMs), to the FIA Tech platform (FIA’s OCR Data Service). FIA Tech will provide statuses on the data submissions to Clarient and any file failures will be communicated back to clients.
DC: Does FIA Tech still report OCR information directly to the CFTC?
SB: Yes. FIA Tech will continue to be the reporting entity that will report the OCR data they receive from Clarient, if an account becomes “reportable,” to the CFTC and/or relevant exchanges. A futures and commodities swap account becomes reportable when it hits a certain contract threshold that is pre-set by the CFTC.
DC: How will Clarient help firms prepare to meet the new CFTC OCR rules by the April 2016 deadline?
SB: Clarient and FIA Tech created a phased implementation approach to meet regulatory deadlines. During the first phase, which went live in August 2015, clients will upload a bulk template with all of their OCR information. Clarient will then transform that data and send to FIA Tech. The Clarient operations team will review all FIA Tech messaging and work directly with the client to resolve any issues that may arise.
The second phase, which will start in October 2015, allows clients to enter OCR information not only via a bulk template but directly through Clarient’s OCR Data Collection and Maintenance service interface, giving clients increased transparency into the status of their OCR profiles.
DC: What are the benefits to firms for using the Clarient OCR Data Collection and Maintenance Service?
SB: This service will enhance efficiency through a validation and review process that includes automated field verification controls to assist with accuracy and decrease the likelihood of errors. Clarient clearly identifies all of the mandatory fields and requires clients to complete all of these fields prior to submission. Clarient will implement a process to adhere to the industry defined data refresh management requirement. Additionally, Clarient employs a dedicated team of experts to assist with training and support to help facilitate a seamless onboarding process for new clients and assist existing clients with anything.
DC: Can Clarient help firms manage other rules and regulations in addition to OCR?
SB: Yes. Clarient is not only an OCR reporting vehicle; it offers a single platform for all reference data needs. Clarient provides a foundation for future regulatory reporting requirements and enables current clients to build on their Know Your Customer (KYC) data submissions. Future services offerings include Regulatory Data Collection, additional jurisdictions in KYC, Tax and Ready to Transact.