Sapient Global Markets, part of Sapient (SAPE) has today announced the ability for its popular Compliance Management and Reporting System (CMRS) to facilitate portfolio reconciliation.
CMRS allows firms to collate vast amounts of data from disparate systems, apply reporting eligibility logic, translate it into the destination message format, and deliver it directly to Swap Data Repositories (SDRs) such as The Depository Trust & Clearing Corporation (DTCC).
The news was announced from the 28th annual International Swaps and Derivatives Association General Meeting (ISDA AGM) in Singapore, which begins today.
In accordance with Dodd-Frank and EMIR requirements, portfolio reconciliation is a critical tool for managing risk. Sapient Global Markets has met client demand with new functionality that allows firms to leverage CMRS in order to alert users to changes in given portfolios by comparing descriptions of the portfolio content provided by each participant.
CMRS establishes a common enterprise platform to manage and publish reporting requirements to various regulatory agencies. It enables customers to configure reporting rules, manage varied data sources, apply filtering, exception and aggregation rules and configure destination reports in the required format. It also allows clients to trace and track data being reported throughout the compliance reporting lifecycle, providing much needed visibility into compliance positions at any point in time.
“Trade reporting for swaps is proving to be a challenge with multiple SDRs and confusion over who should assume responsibility for reporting a trade,” says Will Rhode, director, Fixed Income Research, TABB Group. “Solutions that help reduce report complexity will be welcomed by an industry grappling with multiple new compliance pressures.”
Dodd-Frank and EMIR rules require swap dealers and major swap participants to adhere to certain standards for the timely and accurate confirmation of swap transactions and for the reconciliation and compression of swap portfolios. Confirmation, portfolio reconciliation, and portfolio compression have been recognized as important post-trade processing mechanisms for mitigating risk and improving operational efficiency.
“The additional functionality of portfolio reconciliation is a natural extension of the CMRS platform and is essential given heightened global regulatory pressures and a more complex market model where some derivatives trades will be centrally cleared while others remain bilaterally traded,” said Arun Karur, vice president, Sapient Global Markets. “CMRS enables our clients to further centralize their external communications and compliance efforts to achieve a single view of their compliance status combined with a streamlined method for identifying trades to be reported and translating data from multiple sources into the format required by each of the different regulators.”
Sapient Global Markets will be once again be a lead sponsor of the ISDA AGM, taking place this year in Singapore. Sapient Global Markets will be on site to discuss the impact that regulatory change is having on the capital and commodity markets, and how leading firms are using it to create new opportunities and improve performance.