Lombard Risk Addresses Dodd-Frank Act with Engine for OTC Swaps Markets
Lombard Risk Management, a global provider of integrated collateral management and liquidity, regulatory and MIS reporting solutions for the financial services industry, addresses Title VII of Dodd-Frank Act with its Dodd-Frank Act Engine solution.
The solution is designed to address Title VII ‘Wall Street transparency and accountability – regulation of the over-the-counter (OTC) swaps markets’ issue. This requires reporting swap data throughout the lifecycle of the trade providing real-time public dissemination (for price and volume transparency) and confidential regulatory use (to help conduct market oversight, enforce position limits and track systemic risk). The deadline for the first set of financial products covering credit default swap (CDS)/interest-rate swap (IRS) is July 2012, with other asset classes – e.g. equities, commodities and foreign exchange (FX) – to follow later in the year.
Lombard Risk has been working closely with several large global banks in the US and Europe to analyse the impact of this regulation on their businesses. As a result, Lombard Risk has developed a Dodd-Frank Act Engine solution to enable firms to meet the regulatory requirements relating to Title VII.
Nick Davies, chief technology officer (CTO) of Lombard Risk, said: “The regulators are demanding all information reported ‘as soon as technologically practicable’ and there is significant focus on real-time which may cause real issues for firms with silos of data. The Lombard Risk Dodd-Frank Act Engine is a rules-based, workflow technology and software solution that meets both real-time and event-driven reporting to the regulators, automatically collating and mapping reportable data from different source systems, keeping firms that use the solution compliant with SEC and CFTC rules and giving added benefits for internal management information and reporting.”