To aid firms that face fines over poor regulatory reporting, Sapient Global Markets has launched its RegRecon automated reconciliation module.
“Firms are starting to look at this a lot more seriously,” said Arun Kurar, a vice president at Sapient. “They are not taking the attitude of making timely reports and then figuring out if something happens later on.”
Kurar attributes some of the most common reporting breaks to the flexible manner in which regulators allow firms to assign Universal Trade Identifiers to their trades.
Arun Kurar,
Sapient Global Markets
“Either the clients could generate the UTIs or they could let the trade repositories generate it or they could have delegated it to the counter parties to generate it and then update the records with the UTI,” he said. “The flexibility basically leads to an increased likelihood of errors being introduced. If there is discrepancies on how that is captured, then a client’s match rate is going to be extremely low.”
The new platform identifies any data discrepancies by matching the client’s trade records that are stored on the clients’ systems to the corresponding records held in the trade repository and counterparties.
“Essentially it identifies data inaccuracies and seamlessly gives users a way to the reporting breaks that the platform has identified,” he explained. “Let’s assume it found 50 errors and maybe you fix some trades on the back end. Then you run a reconciliation the next day and RegRecon automatically identifies that the errors have been fixed in the new run and closes all the tickets automatically.”
Clients can license and host the module themselves or license it and have it delivered as software-as-a-service (SaaS). It also can be integrated with Sapient’s RegReport reporting module or other third-party reporting systems, according to Kurar.
