The global reporting landscape presents challenges to all parties. On the one hand, there is a noticeable shift towards more global standardization, for example the moves to adopt ISO 20022, as well as initiatives such as the Common Domain Model (CDM). On the other hand, we see potential divergence of major regimes post Brexit; with the UK already showing signs of distancing itself from ESMA.

Businesses need to constantly scan the horizon for change and to engage with peers to anticipate how the industry is responding. There is a requirement to understand the impact on existing operating models and to minimize the impact of regulatory change, not just on those who report directly, but on their clients as well and to anticipate how changes could affect the business relationship.

We’ll help clients design solutions that enable them to meet identified regulatory expectations with as little impact as possible, and help embed controls aligned with industry standards and best practices.

There is significant burden on firms to stay abreast of upcoming change, both regulatory and market driven. Though our unique set-up we can help mutualize the cost of regulatory change, perform impact assessments and mobilize to respond to these events. Through our work with a multitude of clients (sell side, buy side and financial market intermediaries) we are well positioned to align firms with their peers in relation to their responses to these events*.

*Within the bounds of our confidentiality obligations

Data quality is critical to the success of trade and transaction reporting. Supervisors rely on quality data to perform their role and adherence to standards and alignment with peers is vital, especially in regimes where there is dual side reporting, such as ESMA. Inefficiencies in existing infrastructure and processes, or weaknesses in controls can lead to over or under reporting, with the potential for regulatory censure.

Our team can analyze data and conduct detailed diagnostics to highlight areas where trades are being misreported and can collaborate to help resolve gaps and inconsistencies that are identified using our methodology in adherence with industry standards.

Reporting performance can be monitored, including benchmarking and tracking progress towards improved data quality and consistency along with alignment to industry practices across reporting regimes.

We can also assist clients in evaluating the cost of regulatory reporting change and business-as-usual in relation to their peer groups, and performance in order to help them determine budgetary decisions on future regulatory reporting spend.

The ability of an operational process to continue in the face of unusual, unforeseen or unpredictable circumstances needs to be considered holistically and incorporate people, process, location and technology. To design resilient processes requires deep practical experience of the interaction of the human and automated aspects of operational flows. It also requires an intuitive understanding and experience of what makes an operational flow optimal in a normal business-as-usual context as well as under stressed conditions.

There are many technical solutions available that make almost seamless technical scalability available if appropriate application designs and infrastructures are put in place. Human scalability is much harder to achieve and so straight-through-processing plays a key role in achieving the desired levels of resiliency. High levels of straight-through-processing along with an organization design which considers local as well as global disruption to the human aspects of a process flow make for a resilient process.

The operational resilience is then proven by testing against a set of pre-agreed scenarios and combinations of scenarios. Where possible these scenarios should be regularly physically tested and where not possible to test in this way, should be walked through and ‘role played’ in as close a parallel to reality as possible.

Our team has the depth and breadth of experience to help you design and implement scalable and resilient processes. Their many years of experience of leading operational and technology organizations brings a practical perspective to what can be theoretically achieved. Where resilience is concerned, both are critical.

Implementation of the SDR aspect of CSDR remains imminent and penalties for trade failures will likely have a material impact on transaction profitability. While market sentiment and expectation points to February 2022 as the implementation date, the time available needs to be used wisely and it can be all too easy to de-prioritize essential preparation and process improvements. Post-trade processes need to be analyzed, with settlement efficiency being the driver behind the implementation of this regulation.

There is a requirement to initiate focus on two key areas as we understand it: 1) Prevention: by automating confirmation and matching, generating consistency within business rules and recognizing counterparty requirements, particularly in relation to place of settlement. 2) Resolution: through implementation of a visible end to end trade lifecycle with knowledge of cause and responsibility of any exception that has led to settlement failure.

Our consultants can undertake a detailed gap and impact analysis of clients pre-settlement process to help them identify areas to mitigate the risk of trade failure. We are able to guide clients in their use of DTCC products and services to prevent settlement failure.

Should a fail occur, our experts solutions will work to provide clients with the optimal visibility to enable swift resolution of any fail. We will provide knowledge and guidance to clients, regardless of their role within a trade lifecycle, assisting with their aim of achieving 100% settlement success.

New regulations and changes to business models result in firms having to constantly review and maintain the operating model and processes covering the whole trade lifecycle. Inter-related regulations impact all areas of trade processing from execution to maturity. Data quality, alignment to best practices and the ability to respond in a timely manner to all events is critical in all post-trade touchpoints.

Our team has a thorough understanding of the post-trade lifecycle and can help clients’ make informed decisions on whether their processes and controls are fit for purpose and if they have the resilience to deal with the ever-changing landscape of regulations and industry initiatives. We cover all aspects of post-trade-events, including confirmation, settlement, margining, clearing, and compression.

Our consultants can analyze processes and help to capture better industry practices, including the provision of benchmarking and tracking metrics to show how clients are performing against the industry. We can also help test the adequacy of clients’ controls.

We are uniquely positioned to provide market wide insights on benchmarking and peer analysis for our clients, given the industry use of our products such as ALERT, CTM and DXM. Our experts can help through provision of targeted improvement programs incorporating the effective use of DTCC products.

The ability of an operational process to continue in the face of unusual, unforeseen or unpredictable circumstances needs to be considered holistically and incorporate people, process, location and technology. To design resilient processes requires deep practical experience of the interaction of the human and automated aspects of operational flows. It also requires an intuitive understanding and experience of what makes an operational flow optimal in a normal business-as-usual context as well as under stressed conditions.

There are many technical solutions available that make almost seamless technical scalability available if appropriate application designs and infrastructures are put in place. Human scalability is much harder to achieve and so straight-through-processing plays a key role in achieving the desired levels of resiliency. High levels of straight-through-processing along with an organization design which considers local as well as global disruption to the human aspects of a process flow make for a resilient process.

The operational resilience is then proven by testing against a set of pre-agreed scenarios and combinations of scenarios. Where possible these scenarios should be regularly physically tested and where not possible to test in this way, should be walked through and ‘role played’ in as close a parallel to reality as possible.

Our team has the depth and breadth of experience required to design and implement scalable and resilient processes. Their years of experience of leading operational and technology organizations brings a practical perspective to what can be theoretically achieved. Where resilience is concerned, both are critical.