Droit Financial Technologies LLC -

Pioneering ETD Reporting product to enhance regulatory transparency for listed derivatives

NEW YORK, November 18, 2024 – Droit, a leading technology firm in computational law and regulation, today announces the launch of its Exchange Traded Derivatives (ETD) Reporting product—designed to enhance regulatory transparency and ensure compliance with global reporting requirements for listed derivatives.

Recent scrutiny of position-based reporting obligations to clearing agencies and exchanges has increased pressure on clearing firms to upgrade their reporting infrastructure. Both internal and external audits are pushing clearing firms to adopt stricter controls, ensuring completeness and accuracy akin to OTC transaction reporting standards.

ETD Reporting from Droit provides precise identification and management of reporting obligations for seamless quality assurance of reports pre- or post-submission. Initially focusing on high-risk clearing, collateral, and margin reports, the ETD Reporting product is set to expand beyond futures and options to support a broader range of listed instruments.

With regulators stepping up enforcement and issuing fines for misreporting, clearing firms face the dual challenges of handling vast volumes of trade and position data daily while navigating complex, diverse global regulatory requirements. Senior executives are also pressured to ensure a cohesive quality assurance process exists across their enterprise. Yet, many clearing brokers still rely on outdated, opaque systems that lack transparency and auditability.

Droit’s ETD Reporting delivers a comprehensive quality assurance platform to provide a consistent approach to regulatory compliance. With complete insight into each decision made and the ability to trace the logic through to the underlying source text, the product ensures clarity and accuracy in complex regulatory interpretations.

“Our new ETD Reporting product establishes a unified quality assurance process across Exchange Traded Derivative reports,” said Blythe Barber, Head of Business Development, Americas of Droit. “By using Droit for completeness and accuracy checks, clearing firms can adopt a single global process, significantly reducing the operational burden of current manual methods. Front and middle office teams can fully focus on client opportunities, confident that reporting obligations have been fulfilled.”

“ETD Reporting marks a key step in our strategy to expand our regulatory reporting products to listed derivatives,” said Brock Arnason, Founder and Chief Executive Officer of Droit. “Our clients have many regulatory reporting obligations across departments within their firms. By adding ETD Reporting to our product suite, we aim to provide one platform to advance global compliance and real-time controls, helping our clients navigate these challenges with confidence.”

Moore & Van Allen, PLLC -

Artificial Intelligence (“AI”) is everywhere you look right now. AI is a lot of things, but for most of the market it is simultaneously a buzzword for innovation and efficiency, and a bogeyman for fraud and privacy concerns. As such, AI is a technology that banking and markets regulators, like the Commodity Futures Trading Commission (“CFTC”) are watching closely. On December 5, 2024, the CFTC issued a staff advisory (the “Advisory”) regarding the use of AI in CFTC-regulated markets.

https://www.mvalaw.com/investigations-and-regulatory-advice/cftc-advisory-on-the-use-of-artificial-intelligence-buzzword-or-bogeyman 

Oyster Consulting LLC -

Digital Transformation can look very different depending on the firm and the circumstance. Many firms know they need to do something, but may not be sure exactly what the cost, considerations or impact may be.  Our experts have helped firms achieve success on their technology transformation journey.  Read some case studies to see how we have helped other firms like yours.

Download the Digital Transformation Case Studies eBook to learn about:

• Increasing your competitive edge
• Implementation strategies for success
• Improving conversions and implementations
• Impacting your technology ROI

Dow Jones -

Effectively navigating the intricacies of financial sanctions requires more than just good intentions. Expertise grounded in a comprehensive understanding of regulation and methodology is a must-have in an ever-more tumultuous sanctions landscape. Given an increase in reporting obligations and the need for more frequent guidance, BIGTXN collaborated with Dow Jones Risk & Compliance, Baker McKenzie, and Association of Certified Sanctions Specialists to create a first of its kind handbook on sanctioned securities. 

This handbook offers actionable insights, substantiated by case studies and data, to empower practitioners in ensuring compliance and proactively mitigating risks.

Matrix Applications, LLC -

New York, NY, Dec. 11, 2024 -- Matrix Applications, LLC ("Matrix") has successfully completed the 2024 System and Organization Control (SOC) 1 and SOC 2 Type 2 audits for its TradeBlazer Collateral Management System and Managed Services. The successful completion of these audits is a testament to Matrix’s ongoing commitment to the highest degree of cybersecurity and data protection. The audits were conducted by Schellman & Company, a trusted provider of attestation compliance services.

AutoRek -

The strength of any financial organisation hinges on its ability to manage data effectively. In the financial services sector, where data permeates every facet of business operations, efficient data management is crucial for maximising value and minimising operational costs. Reconciliations are a fundamental control mechanism for finance and accounting. Organisations that fail to modernise their reconciliation process risk overwhelming their finance and operations teams with cumbersome manual tasks and data overload. As UK regulators adopt a more data-centric approach, effective data management has become essential for compliance. For many firms, the internal client money reconciliation (ICMR) is one of the most complex elements of CASS 7.

NRI (Nomura Research Institute) -

Insurers are migrating away from legacy mainframe systems through rehosting or rewriting. However, such modernization projects tend to go awry when undertaken without sufficient preparation or with too much priority placed on minimizing project costs. Such pitfalls, which have in fact cropped up in some high-profile cases, can be avoided by thoroughly analyzing the legacy system before attempting to modernize it.

Pierson Ferdinand LLP -

FINRA has recently adopted significant changes to Rule 3240, tightening restrictions on borrowing and lending arrangements between registered persons and their customers. 

Effective April 28, 2025, these changes will require substantial updates to your policies and procedures. It's crucial to start preparing now to ensure compliance. Find out what these changes mean for your firm and how to stay ahead.

CapitalROCK, LLC -

The RightBRIDGE Annuity Wizard is the ultimate pre-sales annuity solution for broker-dealers, seamlessly combining compliance solutions with intuitive annuity research tools.

Latham & Watkins LLP -

About Latham's Financial Institutions Group (FIG)

FICO -

This independent research report shows why minimum scoring criteria adds reliability to a credit score and how removing it makes the credit score both less predictive and in the long run more costly for everyone. Kroll analyzed the credit failure rate over a two-year period across a data set of 40 million credit scores from individuals who had either a FICO Score or an alternative score in which FICO’s minimum scoring criteria are not used. 

Sia Partners -

Sia Partners has partnered with the Capital Markets community to conduct a survey on the involvement, interest, and sentiment of Gen AI within Corporate and Investment Banking & Capital Markets. 

FICO -

FICO - FICO Scores are designed to rank-order the expected future payment performance of consumers’ credit obligations based on their observable credit bureau attributes, irrespective of the economic environment. Lenders may calibrate FICO Scores based on their own loan portfolios’ recent performance to predict the odds of satisfactory payment performance. However, disruptions to the economic environment can change these repayment odds in a way that differs from a lender’s calibrated estimates, leading to discrepancies between predicted and actual future default odds, and therefore to sub-optimal decisions and analysis results. Such disruptions reveal “latent risks” across portfolios that only manifest themselves during periods of economic stress. Read the white paper to learn more.

Authored by: FICO

Morrison & Foerster LLP -

The Department of Labor (DOL) on its own adopted a fiduciary standard in 2016 for retail clients. This has been met with much controversy and criticism. This Morrison & Foerster report explains how the rule works and its impact in practice, taking into account uncertainty as to its final version.

Authored by: Paul Borden, Hillel Cohn, Lloyd Harmetz and Dylan Naughton

Broadridge Financial Solutions, Inc. -

Broadridge - 2024 study of C-suite executives from 500 financial firms on their digital transformation and use of next-gen technologies.

Authored by: Broadridge

Sia Partners -

Sia Partners North America - The Sia Partners study, involving 75 global banks, investors, and third parties examines the effects of the COVID pandemic and accompanying market disruption on the progress of the LIBOR Transition: conclusion--firms are challenged but moving ahead to meet the cessation date of year end 2021.

Authored by: Bradley Ziff & Chris Zachodzki

Tata Consultancy Services -

Tata Consultancy Services - The impact of COVID-19 on financial services has been considerable, affecting different lines of business and functions. Likewise, the impact of COVID-19 on LIBOR has been significant, resulting in a great deal of volatility in the LIBOR market. However, regulators have reiterated the unavailability of LIBOR as a benchmark rate post 2021. This means that even as banks scramble to prevent service disruption, their LIBOR transition plans will need to continue on track. To minimize the COVID-19 impact on LIBOR transition, banks must review a few aspects that are intrinsically linked. These include: Analyzing changes to current LIBOR exposures per asset class Reassessing product inventory to understand the impact of COVID-19 volatility on performance Defining a systematic transition plan Establishing a robust rates strategy The COVID-19 impact on LIBOR transition is largely stemming from market volatility and changes in the regulatory landscape. However, a systematic transition is key to financial stability and banks must take appropriate steps to ensure the same.

Authored by: Navin Rauniar Lead, LIBOR Transition, TCS Zeeshan (Zee) Rashid Global Head - Risk and Compliance Advisory and LIBOR Transition, TCS

Ernst & Young LLP -

EY - Our newsletter summarizes SEC developments in the last quarter, including certain items we have not previously reported. It highlights recent SEC rulemaking activities, including new rules requiring the timely reporting of material cybersecurity incidents and annual cybersecurity governance disclosures, trends in 2023 SEC staff comment letters and enforcement activities.

Authored by: EY

PricewaterhouseCoopers LLP -

PwC - Survey shows: Business leaders need to get the basics right if they want to avoid losing trust.  The cost of losing trust far outweighs the benefits of gaining it. Employees and consumers are nearly equal in demanding business leaders' prioritization. A trust perception gap remains among businesses, their employees, and consumers.

Authored by: Tim Ryan

Broadridge Financial Solutions, Inc. -

Broadridge - Broadridge’s 2023 Digital Transformation and Next-gen Tech study delivers unique insights from 500 C-suite executives to help senior leaders across business, technology, and strategy/innovation roles, on how digital transformation and next-generation technologies such as AI, blockchain, the metaverse, and quantum computing are reshaping the industry.

Authored by: Broadridge

KPMG LLP -

KPMG - The three-layer approach outlined in this PDF can help firms address the critical prerequisite for successful transformation of complex operations functions with speed, agility, and greater value.

Authored by: Binoy Palakkal; Neam Ahmed; Harvinder Bhatia; Bassam Khattab

Mayer Brown LLP -

Mayer Brown LLP - In the International Financial Law Review‘s publication, Structuring Liability Management Transactions, Mayer Brown lawyers provide a summary of the US legal framework, including guidance provided in numerous no-action letters issued over many years, applicable to debt repurchases, tender offers and exchange offers. They also present some of the main regulatory and tax considerations that should be taken into account when determining the best approach.

Authored by: Anna Pinedo, Thomas Humphreys, Remmelt Reigersman, Eddie Best and David Goett

FNZ -

Appway - As concerns around the COVID-19 pandemic continue to permeate every corner of society, wealth firms have found themselves faced with arguably the steepest tech-learning curve they’ll ever have to navigate.  

Authored by: Leo Almazora

Transcend Street Solutions -

Transcend Street Solutions - Leadership, especially in critical, but technologically-challenged functions like collateral management, is the key to seizing a competitive advantage.

Authored by: Bimal Kadikar, Transcend

RSM US LLP -

RSM US LLP- This is the fourth and final piece in our introductory series on decentralized finance, commonly known as DeFi. In our prior pieces we've introduced DeFi and explored its core building blocks -- the smart contract and token. In this installment we explore one of the first DeFi use cases, the decentralized exchange.

Authored by: Jamison Sites

Amazon Web Services -

Amazon Web Services (AWS) - Machine Learning (ML) is such a powerful new set of technologies, opening up so many business possibilities, that it’s sometimes difficult to imagine how best to put it to use. The possibilities are overwhelming, and there is little history to build on. In this post Baran Karlidag ties ML to the specific challenges that financial services companies are facing in today’s economy, and provides a number of concrete ideas that FinServ firms should be considering. He also addresses issues like governance and regulations that often constrain FinServ firms.

Authored by: Mark Schwartz

Patomak Global Partners, LLC -

Patomak Global Partners LLC - Banning bank mergers would act as a moat protecting large incumbent players from competition much the way JPMorgan Chase CEO Jamie Dimon described the Dodd-Frank Act ten years ago. Banning mergers and acquisitions is anti-competitive and does nothing to help bankers or consumers.

Authored by: Keith Noreika and Bryan Hubbard

Endava -

Endava, Inc. - Moving to the cloud helped an investment bank improve scalability, reduce process complexity, and define the gold standard for a new era of operations.

Authored by: Endava

Hogan Lovells US LLP -

Hogan Lovells US LLP - In an effort to provide more clarity and certainty with respect to the LIBOR transition – and in particular to reduce the significant litigation risk associated with the transition -- the Alternative Reference Rates Committee (ARRC), a group of private-market participants convened by the Federal Reserve Board and the New York Fed, recently announced that it was proposing New York State legislation.

Authored by: Marc Gottridge

Protiviti -

Protiviti - No one can predict when the next disaster or business disruption will strike; the only certainty is that something unplanned and disruptive will happen. To help financial services (FSI) organizations prepare and plan for disruptive events, Protiviti examines critical and pressing concepts about business continuity management and related practices in our Guide to Business Continuity & Resilience.

Authored by: Ron Lefferts, Kim Bozzella, Damon Owen, Matthew Watson, Ali Yasin, Dugan Krwawicz, Sam Basset, Enrico Ferretti, Kai-Uwe Ruhse, Sandeep Gupta, Thomas Lemon, Michael Pang, Ewen Ferguson, Masato Maki

Deloitte -

Deloitte – Banks’ strategic choices will be tested as they contend with multiple fundamental challenges to their business models. They must demonstrate conviction and agility to thrive.

Authored by: Mike Wade, Neil Tomlinson, Val Srinivas

Adenza -

AxiomSL - The Service Level Expectations (SLE) concept and the SLE data-river process discussed in this paper can enable organizations to establish and enrich correct TIC data, enable smooth automated processing, significantly improve the accuracy of their TIC filings and, ultimately, achieve a stronger stance with regulators.

Authored by: Alina Banerjee

Ernst & Young LLP -

Ernest and Young - This publication supplements our Technical Line, Accounting and reporting considerations for the effects of the coronavirus outbreak, and addresses considerations related to the determination of the fair value of a reporting unit and/or indefinite-lived intangible asset and management’s development of prospective financial information (PFI) used as key inputs into fair value valuation techniques, among other topics.

Authored by: EY Collaboration

Broadridge Financial Solutions, Inc. -

Broadridge Financial Solutions - How financial institutions can prepare for implementing and managing a digital workforce with the latest RPA solutions.

Authored by: Broadridge

KPMG LLP -

KPMG - Across industries, the initial COVID-19 response was a rapid reaction to continue delivering critical business services to clients and customers in the midst of urgent global healthcare and economic challenges. As a result of shifting health advisories and regulation, many organizations have had to swiftly move to a work from home model or implement social distancing measures when remote work wasn’t possible. Many businesses have also had to quickly re-think some of their typical operations and reallocate resources to complete newly critical work and meet typical productivity levels.

The same concerns and shift in process are likely to have occurred for your vast network of third parties. While third parties are vital for your organization to prosper, they can also expose you to immense risks. Third party risk management (TPRM) addresses the risks presented by third parties including supply chain disruption, reputational damages, corporate fines, and cyber breaches. A shift in how a third party operates given external COVID-19 pressures, can alter the risk profile of the third party. KPMG has prepared a thought leadership paper that offers near-term tactical considerations and a longer-term strategic vision for the Future of TPRM. The thought leadership paper includes recommendations on how to leverage the information you have learned over the past few months in your TPRM program to fundamentally overhaul your approach to risk identification and risk assessment in the future.

Authored by: Greg Matthews

Lowenstein Sandler LLP -

Lowenstein Sandler - This article discusses the recent warning issued by the Southern District of New York on maintaining attorney-client privilege logs in relation to Universal Standard, Inc.

Authored by: Rachel Maimin and H. Gregory Baker

Cleary Gottlieb Steen & Hamilton LLP -

Cleary Gottlieb Steen & Hamilton LLP - A critical analysis of the EDPB Recommendations 01/2020 on supplementary measures to transfer personal data outside the EU further to the CJEU's Schrems II judgment, and suggested changes to to attempt to reconcile the interests of data exporters, importers and data subjects while complying with the standards set out in Schrems II and the GDPR.

Authored by: Emmanuel Ronco, Natascha Gerlach, Natalie Farmer

SteelEye -

Authored by: SteelEye

FIS -

FIS - The financial world is being shaken to its core. From virtual and embedded experiences to digital assets and decentralized finance, innovations are appearing faster than ever. How do you find your feet on ground that’s constantly shifting? Based on a survey of 875 senior executives from banks, insurers, capital markets firms and fintechs, The Global Innovation Report pinpoints the innovations you need to watch – and the strategies to help you turn them to your advantage.

Tata Consultancy Services -

TCS - Capital market firms operate in a complex and ever-changing technology landscape. At the same time, they must contend with increased regulatory scrutiny, competition from fintech players and the crypto industry, soaring operational and service costs, increased customer expectations, black swan events and so on. Firms need to constantly adapt to stay ahead of the curve, and artificial intelligence (AI) technologies such as generative AI (GenAI) have become a key enabler in this strategic play. In recent months, GenAI has garnered interest from various financial services firms after the launch of ChatGPT, which is powered by large language models (LLMs). GenAI can combine with AI and human intelligence to create content such as text and images and solve complex analytical problems.

Authored by: Anand Chidambaram

Verizon Enterprise Solutions -

Verizon - The Verizon Data Breach Investigations Report (DBIR) provides you with crucial perspectives on threats that organizations like yours face. The 12th DBIR is built on real-world data from 41,686 security incidents and 2,013 data breaches provided by 73 data sources, both public and private entities, spanning 86 countries worldwide.