The U.S. Commodity Futures Trading Commission (CFTC) has issued new rules pertaining to swap data recordkeeping and reporting which will have a profound impact on the way market participants record and report their swap transactionvs on a long term basis. CFTC Rule 17 CFR Parts 43 and 45 will force firms to change their existing processes involving trade execution, processing, confirmation, clearing, settlement, collateral management and other related functions across each of the five major OTC asset classes – Rates, Credit, Equity, FX and Commodity.
As the compliance deadlines set out by the CFTC rapidly approach, it is critical that market participants begin aggressively building out solutions robust enough to meet the newly created recordkeeping and reporting requirements. Headstrong’s Trade Status Monitoring and Reporting Solution is designed specifically to help our clients comply with these new regulations within the required timeframes.
Headstrong’s Trade Status Monitoring and Reporting Solution helps clients comply with CFTC data recordkeeping requirements by providing a data warehouse for the client aimed at providing a single, globally consistent source of data that also delivers cost efficient records management. In addition, Headstrong builds linkages to the newly mandated swap data repositories while also aggregating and formatting existing client data to create a comprehensive reporting structure capable of meeting all new reporting requirements within the required regulatory deadlines.
The Trade Status Monitoring and Reporting Solution goes beyond just recordkeeping and reporting, it also provides clients with a versatile new platform from which they can take advantage of tools designed to enhance trade monitoring, reconciliation and even performance analytics leading to a better, more efficient business line.
The portfolio of services under the Trade Status Monitoring and Reporting Solution is applicable for Swap Dealers, Major Swap Participants and Non Swap Dealers / Major Swap Participants.
“Although reporting counterparty rules defined in CFTC Parts 43 and 45 places most of the reporting burden on the swap dealers, a non-reporting counter party would still reconcile with the Swap Data Repository records, monitor the reporting compliance and use the reports provided by Swap Data Repository to optimize business” Vinod Jain – Managing Consultant at Headstrong
How we deliver:
- Consulting Services- define business and functional requirements necessary to ensure compliance with new regulations
- Project plan, business rules, design documentation and data dictionary in line with emerging regulations
- Customized Trade Monitoring and Reporting Platform
- Seamless integration with SDRs, industry databases and internal systems
- Build two way linkages to major data providers- internally and externally
- Monitor the trade processing status on a single screen across multiple platforms
- Data storage and Archiving solution to store the records
- Reconciliation engine to ensure internal records are in synch with SDR records
- Analytics to enable better trade decision by performing market data analysis
- Rule based processing for selection, validation, enrichment and exception management
- Managed Services- provide cost effective reporting and recordkeeping using Headstrong and Genpact experience
- On-going support and enhancements
- Cost effective, globally located talent pool