• Product
  • Wednesday 13th March 2024

Optimising compliance in a busy year of reporting rewrites using Rosetta

In 2024, numerous trade reporting regimes around the globe are changing and firms need the right technology to comply. Leo Labeis, CEO at REGnosys, explains how they deliver the safe, fast and cost-effective solution that the industry has been looking for. 

 

Complying with regulations is a mission-critical part of financial institutions’ operations, but meeting the requirements of completeness, accuracy and timeliness of regulatory disclosure is often beyond the reach of legacy technology.  

  

Regulators have become increasingly concerned and stepped-up scrutiny due to recent banking failures, which have shone a light on instances of poor risk management and reporting practices.  

  

In this uniquely busy year of changes to global reporting regimes, firms must look to innovative regtech solutions to help them stay ahead of the curve. 

A global reporting overhaul

The world of regulation isn’t known for its fast speed of progression, but over the next year, several reforms to global reporting regimes will reach their compliance deadlines. This includes: 

  • JFSA (Japan Financial Services Agency) (April)
  • EMIR (European Markets Infrastructure Regulation) Refit European version (April)
  • EMIR Refit UK version (September)
  • MAS (Monetary Authority of Singapore) (October)
  • ASIC (Australian Securities and Investments Commission) (October)

These upcoming changes as well as recent amendments to the Commodity Futures Trading Commission’s swaps reporting rules (CFTC Rewrite) have been part of a wider overhaul of trade reporting rules across the G20. 

 

Due to this, regulatory reporting is now one of the top five areas that financial institutions are prioritising in their regtech budgets for 2023/24 according to Grant Thornton

The solution is already live for CFTC 3.2, EMIR⁠-⁠EU and JFSA reporting and will start its testing phase for EMIR⁠-⁠UK, ASIC and MAS reporting at the end of Q1. 

 Why new solutions are needed 

The Bank of England highlights that regulatory reporting is a significant burden, costing UK banks a minimum of £2 billion to £4.5 billion annually. 

 

Under the legacy approach, for every reporting regime firms must typically sift through hundreds of pages of legal text, which they must then manually interpret and code in their IT systems. This challenge is significantly heightened in a year of concurrent updates like 2024, with overlapping, often ambiguous and ever-changing data requirements across jurisdictions. 

 

Inevitably, firms which develop their own reporting solution suffer from inconsistencies and duplication of costs. On the other hand, vendor solutions tend to be expensive to integrate and to lock clients up once deployed. 

Rosetta is the only reporting solution that natively deploys ISDA’s “Digital Regulatory Reporting” (DRR) for transaction reporting. 

Why is Rosetta different?  

REGnosys’ multi-award-winning platform, Rosetta, offers firms both the best-in-class and cost-effective solution they need to achieve reporting compliance. 

 

Rosetta is the only reporting solution that natively deploys ISDA’s “Digital Regulatory Reporting” (DRR) for transaction reporting. 

 

DRR is a global industry-led program to mutualise the cost of interpreting and complying with reporting requirements. With DRR, the industry has developed a standardised interpretation of the rules and stored it in an openly accessible format as both human-readable and machine-executable code. 

 

Rosetta provides compliance safety as it is aligned with the industry’s best practice by design. DRR’s single, standardised expression of the rules has been built, tested and validated through consensus by leading financial institutions. 

 

It is also extremely cost-effective. As DRR has been built by the industry and for the industry, individual firms don’t have to use their resources to either build or buy their own. 

 

Additionally, Rosetta offers speed and certainty of meeting compliance deadlines, with tools to automate the integration and deployment of DRR into firms' reporting systems. 

 

In short, through Rosetta, reporting firms protect themselves from non-compliance risk with the industry’s gold-standard solution, minus the cost and effort that implementing such a solution usually entails. 

In this uniquely busy year of changes to global reporting regimes, firms must look to innovative regtech solutions to help them stay ahead of the curve.

When and where should firms deploy Rosetta?   

Rosetta fully implements DRR across all asset classes and jurisdictions. The solution is already live for CFTC 3.2, EMIR-EU and JFSA reporting and will start its testing phase for EMIR-UK, ASIC and MAS reporting at the end of Q1. 

 

Firms that deploy this solution at the earliest stages will accumulate the largest benefits on their initial implementation. 

 

ISDA estimates that 70% of the CFTC and EMIR requirements are identical. In turn, CFTC and EMIR cover most of the other jurisdictions’ requirements. Firms can adopt a truly global strategy to regulatory reforms by leveraging a single DRR gateway across all jurisdictions. 

The future of regulatory reporting is now.

What next and how?  

The benefits of a complete, global trade reporting solution that can be easily deployed within an enterprise infrastructure do not stop there. 

 

Through Rosetta, firms’ risk, compliance and operations users have access to a reporting implementation that is fully auditable, back to the regulatory text and to interpretations made in the industry’s working group to express it into code. Implementation is also future-proofed, as any update to the rules will be built in DRR and seamlessly deployed in Rosetta. 

 

REGnosys has a successful implementation track-record with leading financial institutions that combines our cutting-edge Rosetta platform with a streamlined onboarding process. A reporting firm can have an MVP deployed in less than a month and a live implementation in under three months. 

 

The future of regulatory reporting is now – firms should begin upgrading their reporting operations sooner rather than later. 

 

Get in touch to find out more. 

Leo Labeis

Leo Labeis

Founder & CEO at REGnosys

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CDM Integration

We do the data mappings for you…

Just extract transaction data from your booking, reporting or any other systems, we handle the rest.
We build mappings in immersion with your tech team, as a packaged +/- 2-day workshop that includes valuable CDM training – and is fun (yes, really)!

… And deliver you a packaged output…

Forget data mapping spreadsheets and forget hard-coded translation buried deep into your code base.
What you get is a transparent, maintainable CDM translation dictionary, automatically packaged into an API to translate your internal trade messages.

… Which you can start using right away

Start using the API for testing right away. For production deployment, we offer a range of hosting options that adapt to your technology stack.
The application grows with you. Just edit your dictionary to connect more and more systems to CDM.
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We can start from any kind of artefact, from XML messages down to Excel or even PDF documents.

… To demonstrate the model-driven approach…

Our team of data engineering experts works in immersion with you and guide the process from start to finish.​
Our promise: some executable data pipeline running based on your model by the end of the workshop.

… Which you can deploy within your organisation

All it takes is a cross-functional team of developers and non-developers, who is open to a fresh (and fun!) approach.​
The buck doesn’t stop there. That team is now empowered to carry that project forward and build model-based pipelines for your organisation.
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Model-Driven Regulation

Bring-on the regulatory text…

Can be anything in your existing corpus, as long as it’s digestible and relatively self-contained.
The target is to deconstruct that text and reconstruct a model of the regulation in +/- 2 days.

… We’ll handle the rest…

Our team of regulatory and engineering experts works in immersion with you and guide the process from start to finish.
Our promise: some executable code running by the end of the workshop, delivered to you and ready for demonstration.

… And you’re ready to develop rules on your own

All it takes is a cross-functional team, ideally all-encompassing from policy to technology, who is open to a fresh (and fun!) approach.
The buck doesn’t stop there. Your team is now empowered to carry that project forward inside your organisation.
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Reporting Audit

First, map your data into CDM...

We have it covered it. All it takes is a +/- 2-day immersion workshop with your tech team to build your mappings.
As a by-product, you get a ready-to-use API to convert all your trade data

… And access your audit results on-line…

Once your trade data have been mapped, our reporting engine compares its output to your reports and analyses any discrepancy.
Analysis is developed within 6 weeks and results published into a web application.

… Through a powerful user interface

Forget static audit reports that end-up on a shelf.
Our reporting engine is available on-demand to reconcile your reporting process end-to-end and down to single trade flow, through a fully interactive interface.
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