North American Regulatory Reporting Update

The 2nd quarter of 2023 was a busy one filled with several industry conferences, a team offsite and customer engagement on upcoming regulatory changes and challenges.

Cappitech spoke at, and sponsored the first annual U.S. Securities Finance Times Event in Boston where 100 securities professionals joined some great sessions on the lending markets, new technologies, industry collaboration and regulatory change, and where we discussed the upcoming regulatory proposals around SEC 10c-1 and OFR.

Cappitech also attended and sponsored the ISDA AGM in Chicago which brought 600 derivatives professionals around the world to my hometown to discuss the state of the industry, challenges and industry solutions.

As one of the newest members of the Canadian RegTech Association we co-hosted a Canadian bank roundtable in Toronto that allowed us to hear firsthand some of the challenges banks are facing whilst navigating the regulatory landscape, meeting resourcing constraints, prioritizing DRR and CDM as well as best practices and solutions around sharing and pairing of UTIs. Collaboration in regulatory reporting is critical and its reassuring to see the industry coming together to openly discuss challenges and solutions the Canadian market is facing.

To cap things off for the month of May, Cappitech brought our U.S. team together for a few days of strategy discussions, training and to have some fun in New York.

The talk of the town of late has been all things UPI and getting our customers prepared for Phase 2 of the CFTC rewrite which introduces reporting of UPI for FX, Rates, Credit and Equity asset classes. Commodities will come later. Our customer success teams are actively engaged with customers to walk through the UPI requirements, work through the gap analysis and help determine the appropriate licenses they may need with the ANNA-DSB.

Q2 also saw increased customer activity around the trade reporting reconciliation and verification as customers in the U.S. and Canada work through their controls to ensure they are meeting the regulatory obligations. Data quality is front and Center. Regulators around the world and both sell side and buy side firms are looking to improve their controls and ensure what is in their books and records matches up to what is in the Trade Repository.

Last but not least, the SEC continues to progress their regulatory agenda and has just published their updated agenda/schedule on proposed changes to existing regulations and introduced new ones. Notably SEC 10c-1 referred to above is in the final rule stages now with the market expecting publication in the fall of 2023.

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.