A Year of Regulatory Reporting Success & Insight

2022 was another busy year for the industry and for Cappitech. Throughout the year we were laser focused on preparing for the CFTC rewrite that went live on 5 December 2022, while constantly working to update and enhance our platform with new features and functionality. I want to take this opportunity to thank our clients, our teams and the many industry stakeholders for their support and engagement - a key aspect and central to our success.

In November we published our fifth annual Regulatory Reporting Survey. It has been illuminating to see how the industry is maturing in some ways and yet still struggling in others, even as regulatory reporting obligations continue to grow (almost every respondent has obligations in at least two jurisdictions). There remains a stark contrast between the US and Europe in regulatory reporting planning and preparedness with half of respondents who had CFTC Rewrite obligations reporting that they were not yet ready at the time of the survey. However, 38% of respondents with EMIR REFIT obligations, only due in 2024, were already confident they were on track to report. Read the full report here. Having said that, we were extremely pleased with the way the CFTC Rewrite Go Live went for our clients.

This will be the year for clarifying details of important regulatory changes such as the EMIR REFIT, JFSA and ASIC - all of which are expected to go live in 2024. We are actively collaborating with our clients as well as industry participants such as end points and associations to ensure seamless implementation when the time comes.

The sheer number of refits and changes on the horizon coupled with the cost of maintaining in-house solutions, are making hybrid reporting solutions gain in popularity, particularly among Tier 1 firms. In our survey, 64% of respondents are taking a hybrid approach to regulatory reporting and 68% of these are Tier 1 firms. As the market continues to mature, the benefit of applying standardized approaches to regulatory reporting leads to significant risk reduction, fewer fines, and an easier implementation process.

Last year saw huge growth, primarily amongst product and technology, making up 60% of our people, while the bulk of the rest of our people are part of our client excellence team. This underpins our commitment to the regulatory reporting space and to our continued investment in our clients and products.

With a number of enhancements to the platform over the last year, and many more planned for the future, our growing client base continues to be at the core of all we do. We are also extremely proud that our efforts have been recognized at an industry level and that we continue to win a range of industry awards, including the Risk Markets Technology Award for "Regulatory Reporting Product of the Year" and the Waters Buy-Side Technology award for the "Best Buy-side Compliance Product for Regulatory Reporting".

S&P Global provides industry-leading data, software and technology platforms and managed services to tackle some of the most difficult challenges in financial markets. We help our customers better understand complicated markets, reduce risk, operate more efficiently and comply with financial regulation.

This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.