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Evolving global OTC market structure and regulatory requirements
sought to reduce systemic risk in the derivatives markets
introduced by US CFTC, EMIR as well as Asian jurisdictions, are
transforming how the industry operates. Complexity in managing
financial systems, data and connectivity, as well as mandates to
standardize trading, clearing and trade reporting are putting
pressure on all market participants as compliance and technology
costs continue to grow.
As enhanced transparency is a key principle across most new
regulations, existing systems, data models and internal processes
of many firms are often inadequate to meet heightened compliance
obligations of a cross-jurisdiction regulatory trade reporting
environment.
In response, IHS Markit introduced the Integrating Reporting
solution in alliance with Catena Technologies in 2016. The service
supports transactions across all asset classes, plus valuation and
collateral reporting to multiple jurisdictions and key trade
repositories.
In Asia, regulatory challenges are compounded by the fragmented
nature of the markets and regulatory focus on products more
prevalent in the region, such as FX derivatives and equity-linked
OTC derivatives. For example, in contrast with other major global
markets, regulators in Hong Kong and Singapore require 'nexus'
trades, i.e., trades that originate in their jurisdiction but are
booked elsewhere, to be reported locally. Thus, it is not uncommon
for even relatively smaller derivatives market players to be
required to comply with regulations imposed by up to five
jurisdictions when engaging in regional trading activities.
Driven by the success of the solution's powerful rule engine,
quick integration process and flexible approach, IHS Markit was
recognized for providing the "
Best Solution in Trade Reporting" at Regulation Asia Award.
The award is a testament to our ability to help clients meet
their global regulatory reporting obligations across multiple
legacy systems in a highly controlled, scalable and cost-effective
manner. It also demonstrates we are a trusted partner for handling
a sheer amount of trading information by the industry and
supervisory bodies.
A large regional bank in Asia opted for Integrated Reporting to
meet its requirements for a more controlled, robust, multi-asset
and cross-jurisdictions reporting solution. In addition to
workflow, reconciliation and control dashboards, the solution was
also valued for its efficient deployment within a challenging
timeframe and scalability in supporting the bank's future
regulatory compliance needs as they increase their global market
reach.
We are delighted that the MarkitSERV team has been recognized
for its excellence by Regulation Asia. We thank our clients for
their support and our colleagues for their valuable expertise and
efforts. We look forward to building upon our successes and
continuously delivering superior regulatory reporting services to
the market.
Posted 21 February 2020 by Julian Chesser, Managing Director, Trade Processing Post-trade platforms for Asia Pacific, S&P Global Market Intelligence
IHS Markit provides industry-leading data, software and technology platforms and managed services to tackle some of the most difficult challenges in financial markets. We help our customers better understand complicated markets, reduce risk, operate more efficiently and comply with financial regulation.
