Every commodity trading house is aware of the importance of regulatory
compliance, yet we hear about violations and fines levied by regulatory
bodies. The enforcing of regulatory compliance amounts to a complex set of
tasks because every stakeholder in the business process is required to be
In this whitepaper, we explore the data side of regulatory compliance
success: the gathering of the right data, adding the right dimensions,
translating to Repository format et submitting in a controlled manner.
Conquering your data is the key to mastering any compliance requirement.
DATA DRIVEN REGULATORY PROCEDURES
New data driven regulatory procedures are adding pressure to compliance departments and IT to gain control and avoid paying high fines.
Businesses active in the commodities industry continue to face increased
regulatory oversight with requirements differing by region and country. Market
participants are faced with a daily challenge; to keep a good overview of
their performance and risk exposure. In practice this means having daily, actual
and up to date insights in overall business positions, which is difficult,
labor intensive and expensive. Especially as usually the underlying data needed
resides in many different internal and external systems. As an outcome,
keeping track of global positions in real time is almost impossible.
THE NEED FOR A CENTRALIZED DATA REPOSITORY
Tradesparent can help you implement solutions by using a data driven and
risk based approach by collecting and harmonizing all transaction and
positions data in a centralized single source of truth data repository for
complete and accurate monitoring and reporting. The Tradesparent software is
non intrusive and is flexible to handle any existing data landscape such as
CTRM, ERP, financial systems or excel spreadsheets serving as the “glue” to
connect all the systems together for transparent reporting.
Ito van Lanschot, Managing Director of Tradesparent, comments
“Automated data management across all business levels is the key to simplified and painless compliance reporting.”
COMPLIANT AND IN CONTROL IN 3 SIMPLE STEPS
Given the range of requirements of the different asset classes, trade types and
jurisdiction, Tradesparent advises to be in control and compliant in just 3 steps:
1. Build a centralized "Data Repository" for all derivatives and related physical
trades on all Asset classes including both daily transaction and position data
which collects, harmonizes and stores all transaction and positions data.
2. Determine your specific regulatory requirements from daily Trade Reporting to threshold monitoring or tracking exchange limits. Merge these requirements with Tradesparent’s preconfigured regulatory engines and you have a purposeful, ready to go, regulatory monitoring and reporting platform.
3. Leverage the centralized data repository to report to external stakeholders in a way you and the competent authorities desire!
Tradesparent’s centralized data repository can also be leveraged for other needs and reporting requirements such as Positions & Performance, risk and margin reporting. You are in control!
Tradesparent is an integrated Data & Analytics Solution with its roots in the commodity industry. From the ground up the design has been geared towards
data handling and then applying this data to a particular reporting solution.
We ingest, normalize and apply a variety of checks to the trade data at the lowest
denominator and have adapted the system to deal flexibly with the characteristics for financial and physical trade data. In addition, we have integrated the front end reporting environment and designed it such that specific business logic can be applied at this stage of the process for the best fit with the evolving business requirements.
These fundamental design traits and experience in translating business requirements into systematized reporting have positioned us perfectly to deal with the derivative rules and regulations combined with our many other out of the box business solutions.