9725
  • REGULATORY REPORTING

ENFORCING TIGHT DATA CONTROL PROCESSES FOR MIFID II
& DODD FRANK ACT COMPLIANCE

CHALLENGE

Our client’s regulatory reporting process was entirely based on compliance staff pulling data from multiple sources to cobble together a report in excel, which was prone to errors and omissions. Systemic limitations to maintain traceability of reported trades resulted in over, under and misreporting resulting in significant fees being incurred due to non-compliance.

Daily compliance monitoring included hundreds of manual steps across 6 trading systems and 7 compliance tracking systems with low auditability. Both compliance staff and management were frustrated because this time-consuming manual process drained staff resources from other tasks and was prone to errors and omissions. Furthermore, their reconciliation process only covered 1 out of 6 required asset classes and it was not scalable to support the 5 other asset classes.

In addition, the firm immediately needed to find an independent validation platform to comply with Article 15 of RTS 22 under MiFID II.

SOLUTION

EZOPS’ reconciliation platform independently sourced transaction details regarding cash, fixed income, exchange-traded derivatives, interest rate swaps and foreign exchange transactions from the firm’s front office systems and applied data transformation, filters and validations to confirm reporting eligibility.

After cross-referencing this information against independent services to identify pre- and post-transaction reporting eligibility, EZOPS created detailed reports that enabled the client to comply with post-trade transparency and transaction reporting required by MiFID II, swap data reporting required by the Dodd-Frank Act, and other similar global reporting requirements. The result was an easy-to-use reporting structure that enabled the client to see matched, unmatched, and partially matched records with high accuracy and filter out true breaks from mere data format issues.

The client is now implementing EZOPS’ predictive analytics algorithm that captures past reporting violations, enhancing the algorithm so that future reports are more accurate.

“Using EZOPS’ reconciliation and workflow management platform has completely transformed our break resolution process. It has re-energized our staff to focus on the important checks and improved our reporting accuracy by 50%.”

IMPACT TO GLOBAL BANK’S BOTTOM LINE
JUST MONTHS AFTER IMPLEMENTING EZOPS

Automation helped reduce the timetaken to reconcile and report reporting data by 60%.

Improved reporting accuracyto regulators by 50% for MiFID II and Dodd Frank

Automation framework facilitated source remediation for 65% of breaksrelated to manual processes

Traceability, auditability, and workflow automation reduced fines and risk

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