When the Dodd-Frank Act was signed in July of 2010, the mandates in Title VII called for a host of new initiatives involving OTC derivatives such as mandatory execution on transparent platforms, mandatory clearing of swaps, and reporting of data to data repositories, all within one year of the Act’s ratification.
There were a few glaring problems with that timeline, namely that neither the swap entities nor products had been clearly defined, certain platforms such as swap execution facilities were not in existence prior to Dodd-Frank and, perhaps most significantly, much of the technology and infrastructure had not been built. Some of the required technology had yet to be invented!
Three years later, the rules are reaching their final stages, with much of Title VII already effective. Meanwhile, across the globe, other jurisdictions are gearing up for their own versions of OTC derivatives transparency. On February 12, 2014, counterparties will need to report details of derivatives transactions to a registered or recognized trader repository. In other words, the clock is ticking.
Technology and advisory firms serving the capital markets know how important it will be to implement these new reporting requirements as seamlessly and non-disruptive as possible to market participants.
Jim Bennett of Sapient Global Markets knows full well how critical it is to properly integrate systems. “Standardized, automated messaging is the key” to compliance and reporting says Bennett, but platforms must also be flexible enough to interface with internal systems. Bennett sat down with John Lothian News editor-at-large Doug Ashburn to explain Sapient’s approach to Dodd-Frank and EMIR reporting, and how its Compliance Management and Reporting System (CMRS) is helping firms meet the regulatory challenge.