Lombard Risk Management plc, global provider of integrated collateral management and liquidity, regulatory and MIS reporting solutions for the financial services industry, has created a Dodd-Frank Act Engine solution, designed to address Title VII “Wall Street transparency and accountability – regulation of the OTC swaps markets” issue.
The Dodd-Frank Act Engine solution requires reporting swap data throughout the lifecycle of the trade providing real-time public dissemination and confidential regulatory use. The deadline for the first set of financial products covering CDS/IRS is July 2012, with other asset classes, such as Equities and Commodities, to follow later in the year.
After working with several large global banks in the United States and Europe to analyse the impact of this regulation on their businesses, Lombard Risk has developed the solution to enable firms to meet the regulatory requirements relating to Title VII.
Chief Technology Officer of Lombard Risk, Nick Davies, said, “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.”
Chief Executive Officer of Lombard Risk, John Wisbey, added, “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.”