February 21, 2012

Lombard Risk Management plc has rolled out a Dodd-Frank Act Engine solution enabling firms to meet the requirements for reporting OTC swaps data throughout the lifecycle of the trade, according to the company’s release.

The solution addresses Title VII, “Wall Street transparency and accountability— regulation of the OTC swaps markets” under Dodd Frank requiring real-time public dissemination for price and volume transparency and confidential 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 defaul swaps/interest-rate swaps is July 2012, with other asset classes (e.g. equities, commodities and FX) to follow later in the year

Lombard Risk said it has been working closely with several large global banks in the United States and Europe to analyze 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.

In the release, Nick Davies Chief Technology, commented, “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.”

U.S. clients turned to the firm as its solution provider for this new regulatory issue as a result of “our quality work and valued experience in the regulatory and collateral management areas,” said John Wisbey, CEO of Lombard Risk in the release. Lombard Risk designed the technology solution with European regulations in mind as well. “We do not however see this as a U.S. problem only — European regulators are on the same track, with EMIR and MiFID2, expected to be operational towards the end of 2013, and our technology is designed with that in mind. The Dodd-Frank Act regulations affect European and other foreign banks in the U.S. that are active in derivatives and, as the top supplier of regulatory reporting solutions to foreign banks in the U.S., we believe we are best placed to serve our clients’ needs,” stated Wisbey.

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Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in ...