The joint, full-stack solution enables both the buy- and sell-side to manage shareholder disclosure obligations for long, short and takeover panel reporting.

Brock Arnason

According to the firms, the offering reduces compliance costs and manual dependencies as well as enhancing users’ control via its intuitive interface which simplifies workflow.

Speaking to The TRADE, Thomas McHugh, chief executive and co-founder of FINBOURNE Technology, explained: “Timely, accurate and audited data is the foundation of regulatory reporting. Regulatory rules are the building blocks on these foundations. Managing the required data as requirements change has become expensive and burdensome.

“Interpretation of data and rulesets together, as both change over time, is an even more difficult and expensive task if done alone. Our partnership with Droit brings this expertise from our firms and partnerships to tackle this challenge in a compelling way.  We are bringing cutting edge technology and community expertise together in a single end-to-end offering.”

Read more: Seilern Investment Management selects FINBOURNE Technology to support growth

The unified approach between cloud-based investment data management software provider FINBOURNE Technology and Droit, a technology firm at the forefront of computational law and regulation, ensures consistency and clarity when it comes to complex regulatory interpretations, as well as accurate reporting.

“This partnership enhances our ability to safeguard asset managers by making sense of shareholder disclosure data when it comes to complex trading books and provide a level of granular reporting detail that is unmatched in the industry,” explained McHugh.

Droit’s capabilities in translating and processing detailed guidelines from all major global jurisdictions, as well as automating the decision-making process for shareholder disclosure reporting eligibility, coupled with FINBOURNE’s advanced data transformation capabilities means that the new solution seamlessly maps the multiple data inputs needed to evaluate rules.

“The asset management industry can directly benefit from the experience of their sell-side counterparties. FINBOURNE’s platform, built specifically to support the volume and complexity of data that characterises position reporting, integrated with our consensus-driven eligibility rules, offers firms unrivaled traceability, transparency, and auditability,” said Brock Arnason, founder and chief executive of Droit. 

Specifically, the offering leverages FINBOURNE’s financial data management platform LUSID, embedded with Droit’s position reporting product – based on consensus interpretations of requirements from a consortium of six global banks, including Barclays, BNP Paribas, Goldman Sachs and HSBC. 

More than 100 global jurisdictions currently have position reporting obligations, meaning that market participants must report both equity and equity derivatives holdings to regulatory bodies – a complex, time consuming and costly process.

Read more: When it comes to desk set-ups, buy-siders are readjusting how derivatives fit in

Addressing the importance of position reporting, Arnason, tells The TRADE that “[it] is a data management and regulatory interpretation challenge that firms must tackle […] Those responsible for position reporting obligations will rest assured that they can disclose with confidence.”

The post FINBOURNE Technology and Droit set to partner on end-to-end position reporting solution appeared first on The TRADE.

As part of the deal, market participants will be able to use Droit’s reporting eligibility platform within DTCC’s Pre-Reporting Transformation Services for various G20 reporting regimes, including the impending Securities Financing Transactions Regulation (SFTR).

DTCC’s Pre-Reporting Transformation Services aim to normalise and validate trade data before it is submitted to the registered trade repository. The addition of Droit’s ADEPT platform will provide the option to include pre-installed reporting decision-making for both SFTR and derivatives reporting compliance.

“Regulatory compliance is a key issue for market participants across the post-trade space. DTCC will continue to work with our clients to help them understand how new and existing regulations can affect their day-to-day processes, and where we can provide value-add solutions,” said Val Wotton, managing director of product development & strategy for derivatives and collateral management at DTCC.

DTCC added that the partnership with Droit will also help reduce the operational burden for firms and mitigate regulatory risk by allowing them to apply eligibility logic before submitting transactions to trade repositories.

“Since 2014, Droit’s ADEPT platform has been invaluable to our clients in proving, to themselves and external parties, that reporting decision-making for each transaction is accurate and complete with respect to the laws in force at that time,” said Satya Pemmaraju, CEO of Droit.

“This new link between DTCC’s Pre-Reporting Transformation Services and ADEPT provides a compelling proposition for an industry seeking efficient, accurate, transparent, scalable and cost-effective reporting infrastructure.”

The post DTCC teams up with Droit for trade reporting appeared first on The TRADE.