The futureLANDSCAPE for regulatory trade reporting
futureLANDSCAPE gives you control and transparency on your trade reporting to multiple repositories in North America, Europe and Asia from multiple internal systems across asset classes. The system provides an agile, proven, built-for-purpose platform for Trade Reporting including:
- sourcing, transforming and enriching trade data
- validation and eligibility checking
- UTI/UPI/LEI handling
- trade submission and monitoring
- operations workflow
- reconciliation with incoming reports from the repositories
The solution is proven to cover the requirements of Dodd Frank, EMIR (including submission to all major repositories), Canadian and Asian reporting. We have demonstrated that we can add new jurisdictions as required by clients in a few weeks, using the same engines and central data models. For our international clients, the ability to manage all reporting through one central strategic data platform is proving invaluable. The solution can be implemented:
- for a single reporting requirement
- as a strategic solution covering all reporting
- as a control framework sitting over your current reporting solutions
The new era for Regulatory Trade Reporting
The legislators and regulators are fiercely and determinedly pushing the industry to lower counterparty risk and increase transparency. They are forcing through radical changes to the landscape for OTC derivatives, with new central counterparties, clearing services, trading venues and reporting repositories. The Dodd-Frank Act (DFA) and the EU directive on Markets Infrastructure (EMIR) and other Trade Reporting legislation means that no participant in this industry will be immune from these changes.
The requirements of regulators reflected in DFA, EMIR, Canadian and other reporting rules are significantly different and increasingly onerous and wider in scope. The continuing change in regulations makes it imperative that any technology solution is agile, flexible and rules-based. Timescales to comply with these mandatory requirements are shortening rapidly, and deadlines becoming more binary. We specialise in accelerating time-to-compliance and future-proof our clients against further regulatory change. Our clients have usually achieved live running in weeks from their project start and have often gone on to adopt Message Automation as their strategic Trade Reporting supplier.
Message Automation futureLANDSCAPE: the platform for the challenges ahead
Building on our successful implementations of futureLANDSCAPE for Dodd-Frank and Asian compliance across multiple asset classes, we successfully worked with a number of clients on their EMIR Reporting solutions and have now also implemented Canadian reporting for two major banks. Whether a standalone solution for a single repository such as DTCC, or Regis-TR or a cross-jurisdiction implementation involving diverse TRs, the software is the same, only the rules change.
- Connect to multiple external reporting destinations
- Pre-delivered logic for reportability determination and format validation
- One solution for all asset classes
- Highly configurable operations dashboard for handling alleges and exceptions workflows and reporting
- Real-time and continuation reporting;
- Third party reporting and "On Behalf Of" functionality
- Rule based business validation to ensure conformance with regulators' message formats
- Proven FpML Messaging Framework built to handle trade lifecycle events
Sourcing and Enriching Data for Reporting
In our experience it is is unusual for all of the required data for reporting to be in a single easily accessible location. The futureLANDSCAPE solution can be used to connect multiple sources of trade information and reference data, such as:
- front office trading applications
- customer master databases
- middle office and risk systems
- trade warehouses, back office and collateral systems
- e-commerce platforms
Our proven transformation technology is then used to bring these disparate data formats back to a common structured format, such as an internal reporting repository. Our translation functionality is also ideal for enriching data from diverse reference systems prior to transmission. Validation against business rules or against other data sources, for example for Product Taxonomy or Legal Entity Identifiers (LEIs), is all handed by rules configuration as opposed to code.
Trade Fact Based Decisioning
We can then make use of our patented content based decisioning algorithm to make decisions on :
- unique identifier handling - USI and UTI or both
- jurisdiction (nexus) determination
- reporting party (RCP) determination
- product type (UPI) determination & hence eligibility
futureLANDSCAPE allows definition of routing rules by asset class, product or sub-product type according to the economic details of the trade. It also provides for overrides by trading venue, jurisdiction, channel, counterparty type, clearing method, region, etc. etc.
All the routing of trade information both at inception and the subsequent handling of lifecycle events is rules based. Hence it can be rapidly adapted to changing reporting requirements. The same software platform can be used for near-time reporting, daily (T+1) submissions or both.
Why futureLANDSCAPE for reporting?
- external regulatory requirements pre-configured
- built for purpose - inherent derivatives data capability
- operational capability and flexible user workflow
- rules based for rapid "time to compliance" in mulitple jurisdictions
- consistent approach across asset classes
- step by step adoption for lower risk
Why Message Automation?
- genuine domain expertise
- proven technology
- academic pedigree & unique patented software