Why maintain MULTIPLE solutions for DIVERSE compliance regulations? Unify your reporting processes with our deltaconX regulatory platform
With the introduction of a programme of Global regulatory ‘Rewrites’ commencing with the CFTC in December 2022 and encompassing, MAS, HKMA, ASIC, EMIR EU and UK over the following 24 months market participants will face significant additional reporting challenges. Given the breadth and depth of these changes we are more convinced than ever that with our approach of unifying and automating all relevant data collection, enrichment and validation processes across Global regulatory transaction reporting into our unified deltaconX regulatory platform - will significantly reduce your efforts and costs to comply with ever changing reporting regimes and allow you to refocus on your core business.
Meeting the challenge of fragmented source data
Data can be received and processed from multiple internal and external sources to generate complete reports for our clients. This means that if our clients use multiple systems to capture different types of orders, trades, valuations, or collateralisations, we extract the required data from those various sources. Due to our flexible integration methods clients can source data from various internal and external data sources and in different file formats. Therefore, the implementation efforts of our clients are significantly reduced.
However, some data may not be available in the transaction capture systems, e.g. the Type, Year, and Version of Master Agreement. Usually, our clients use a dedicated agreement with their counterparties and specific transaction types. That information can be set as default value in our system, so that our clients do not have to provide all information in each transaction, but they can use default values. Our clients can decide which values should be defaulted under which condition and the same is possible for data mapping.
Supporting UTI generation and sharing
One of the most discussed topics remains UTI generation and sharing between counterparties. ESMA has revised the waterfall schema on who needs to generate the UTI. Our system can receive reports including UTIs generated by the counterparties, CCPs, or trading venues, etc. However, in case the UTI is missing in the data set, for example because our client has agreed with a specific counterparty that he is systematically generating the UTI, our deltaconX regulatory platform can generate UTIs according to market standards and send the UTIs in an end-of-day report to the counterparty, even if the counterparty is not a deltaconX user. For our clients, the UTI generated by our system will be sent back to the client’s source system, so that his records are complete.
Ensure use of valid LEIs
Generally, our clients do not identify their counterparty with LEIs. Our system is freely configurable so that our clients can still use their internal counterparty identifiers, and we transform those into valid LEIs. Our deltaconX regulatory platform contains a counterparty repository in which all static data including LEIs are automatically loaded from the GLEIF data base on a daily basis. Hence, we can ensure that only valid LEIs are reported to the trade repositories by our clients.
Reporting in ISO 20022 format
We have created a generic XML schema which contains all information to fulfil the reporting obligation under multiple regulations. The required data will automatically be extracted from the customers’ source system(s), so that our deltaconX regulatory platform can generate the reports according to the applicable regulation’s required format (for all regulations this is planned to be ISO 20022 XML). In addition, we support manual data upload via MS Excel spreadsheets, or manual transaction entry directly into the deltaconX GUI for those participants having only a few transactions per month.
Timely and accurate reporting
We provide clients with flexibility in both how they transmit data to us, from mapping their source system data with our bespoke data schema via an API to a file upload via SFTP to manual entry via the GUI, and the regularity of when this data is sent to us from Straight Through Processing to batch upload. Our aim is always to support our clients’ internal workflow processes.
Once the data is received by our platform, we apply our sophisticated validation rules engine (this is based on the particular regulation, contract or event/action type, bespoke customer rules and third party requirements) on the data before submitting it to a chosen Trade Repository. Data validation is a vitally important process that is included in our service package, and it ensures that no incorrect data is reported to the trade repository, and ultimately on to the NCAs.
Regulation never ends
The past years have proven that even after entry into force of a regulation, the journey to stay compliance is not over. This has never been more relevant than it is today as enter into a cycle of major changes across Global Regulations.
In the EU and the UK, the second part of EMIR REFIT (the major act) will provide unique challenges to Market Participants given the breadth and depth of the changes required by ESMA and the FCA respectively. This ranges from the adoption of Standardised Data Terms (Common Data Elements) to the mandating of the format for transmitting data to and between Trade Repositories and NCAs (XML ISO 20022) to a major increase in the number of reportable fields (80+ new fields). Also, the amount of reconcilable fields (250% increase by 24 months after Go Live), the introduction of Event types in addition to the Action type to provide, and more granularity to the reporting of life cycle events, represent major changes in the reporting workflow. Unlike in the November 2017 update, ESMA gave a six-month deadline to upgrade outstanding trades to the new required standard, so market participants do not only have to change their reporting logic for the newly reported trades, but also trades which are outstanding for more than six months have to be upgraded. The likely divergence in adopting the new standards between the EU and the UK, will make the reporting even more complex for entities being active in both jurisdictions. An exhausting if not exhaustive list highlighting some of the challenges that await Market Participants in complying with just EMIR REFIT
ISO 27001 Accreditation
In 2022 we received ISO 27001 accreditation, this provides our clients prospective clients with complete assurance that their data and the infrastructure around it, from our internal processes to the hosting provider we partner with, across the whole chain, is following best industry practises and is certified as such.
Highly secure cloud-based Solution
We operate a cloud native solution; it was developed to run in the cloud and to benefit from the scalability that Kubernetes allows when handling dynamic amounts of data. This also provides us the with the agility to manage and maintain multiple external regulatory frameworks in a timely and unintrusive manner, leading to greater efficiency and lower TCO for the underlying client.
About deltaconX AG
deltaconX AG is a Swiss company based in Lucerne, offering our deltaconX regulatory platform since 2013, our single focus is to provide Market Participants with a service that enables them to continuously comply with Global Regulatory Transaction Reporting obligations in a timely and efficient manner.
