Regulatory requirements

The regulatory requirements for capital markets participants are becoming increasingly stringent and consume inordinate amounts of time and capital.

At the heart of several wide-ranging regulatory initiatives – among them MiFID II, the Fundamental Review of the Trading Book (FRTB) and BCBS 239 – is the requirement for understanding the source, accuracy and veracity of the data they are using, whether to contribute to market transparency mechanisms, report trades or calculate banking and trading book risk.

Financial institutions need to be sure the data they are contributing, reporting or using for risk calculations has been quality-checked and is fit for purpose. To ensure success, firms need robust quality control and data governance at all points through the data generation, contribution and analysis workflow.

CJC offers a suite of solutions to help meet these regulatory data challenges, particularly for MiFID II, FRTB, SEC Rule 613 and FINRA Rule 4590. They include:

  • Contributions Monitoring Service (CMS) – a data governance framework that ensures that regulatory data is free of gaps, stale data, outlier and other quality issues. CMS can help firms ensure consistency in the contributions across all asset classes to Approved Publication Arrangements (APAs) under MiFID II, or demonstrating evidence of modelable liquid prices under FRTB. 
  • Global Trade Repository Analytics (GTRA) – an aggregated feed of OTC derivatives transaction data from four US trade repositories: DTCC, ICE, Bloomberg and CME Group. GTRA addresses the difficulty in gaining a full view of a transaction due to the fact that counterparties are able to report to a trade repository of their choice. The GTRA database publishes full transaction data less than 15 minutes after the trade, allowing European institutions to show evidence of observable rates under FRTB.
  • Secure Data Pooling Services (SDPS) – The pooling service allows banks and other independent data sources to aggregate their illiquid OTC derivatives prices, contributions, traded and transacted datasets, allowing them to ‘observe’ market risk regulatory capital rules, modeled in line with the requirements of FRTB.

Take a look at our CMS overview sheet and capabilities paper

View sheet View paper

  

Related Services

Mosaic Time Synchronization (mosaicTS) – supports time synchronization in compliance with MiFID II’s provisions for tracking order and trade data through the transaction workflow.