Lombard Risk Dodd-Frank Act engine as solution for Title VII, Regulation of OTC Swaps Markets
July 2012: CFTC and SEC deadlines for real-time reporting
Lombard Risk Management plc (LSE: LRM) ("Lombard Risk"), a leading global provider of integrated collateral management and liquidity, regulatory and MIS reporting solutions for the financial services industry, addresses Title VII of Dodd-Frank Act with its Dodd-Frank Act Engine solution.
The Lombard Risk Dodd-Frank Act Engine solution is designed to address Title VII “Wall Street transparency and accountability – regulation of the OTC swaps markets” issue. This requires reporting swap data throughout the lifecycle of the trade providing real-time public dissemination (for price and volume transparency) and confidential regulatory use (to help conduct market oversight, enforce position limits and track systemic risk). The deadline for the first set of financial products covering CDS/IRS is July 2012, with other asset classes (e.g. Equities, Commodities and FX) to follow later in the year.
Lombard Risk has been working closely with several large global banks in the United States and Europe to analyse the impact of this regulation on their businesses. As a result, Lombard Risk has developed a Dodd-Frank Act Engine solution to enable firms to meet the regulatory requirements relating to Title VII.
Nick Davies, chief technology officer of Lombard Risk explains: “The regulators are demanding all information reported “as soon as technologically practicable” and there is significant focus on real-time which may cause real issues for firms with silos of data. The Lombard Risk Dodd-Frank Act Engine is a rules-based, workflow technology and software solution that meets both real-time and event-driven reporting to the regulators, automatically collating and mapping reportable data from different source systems, keeping firms that use the solution compliant with SEC and CFTC rules and giving added benefits for internal management information and reporting.”
John Wisbey, chief executive officer of Lombard Risk says: “As a result of our quality work and valued experience in the regulatory and collateral management areas with our U.S. clients, they turned to us as their solution provider to this new regulatory issue. We do not however see this as a U.S. problem only – European regulators are on the same track, with EMIR and MiFID2, expected to be operational towards the end of 2013, and our technology is designed with that in mind. The Dodd-Frank Act regulations affect European and other foreign banks in the U.S. that are active in derivatives and, as the top supplier of regulatory reporting solutions to foreign banks in the U.S., we believe we are best placed to serve our clients’ needs.”
Margaret Bailey, director, Sales – Americas at Lombard Risk, who is responsible for the Dodd-Frank Act program, adds: “Our solution has been getting deep traction due to the complex nature of the reporting and our reputation as experts in this field.”